The market continued to rally today, but at a more moderate pace than in the last couple of sessions. The major averages opened mixed but moved higher for most of the rest if the day and all the major averages finished high in their intraday trading ranges. The Nasd averages were a bit stronger with the COMPQ and the NDX gaining .64% and .42% respectively. The SPX was higher by .31%. Volume was again the issue. It was lower across the board for the third day. It fell 8.98% on the Nasd and 9.28% on the New York. Leading stocks rallied as well with the leaders index gaining 1.50% on the day. The index closed near the top of its trading range on lower and below average volume. The market continued to move higher today. The gains were more moderate, as you would expect. This is actually healthy as you can’t expect that pace to continue. There are also some other things I look at that are acting better. The A’s minus E’s have turned up and the Summation Index has also. The WOO has also given a buy signal. The biggest problem remains volume. It has been lower three days in a row while prices rallied. This pattern, if it continues, would develop into a wedging formation and be a negative. This can change quickly. All we need is a solid up day on higher volume to break the pattern. The rally attempt continues and we will have to see if it produces a follow through. Jerry
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