The rally continued today with strong price gains in all the major averages They opened higher and spent the rest of the session working their way up. All the major averages finished high in their intraday trading ranges. The gains were pretty evenly divided with the COMPQ and the NDX gaining 1.39% and 1.59% respectively. The SPX rallied 1.38%. Volume was mixed. It was lower by 5.14% on the Nasd and higher by 2.87% on the New York, according to Esignal. Volume figures will be light this week due to the holidays. Leading stocks had a strong session as well with the leaders index gaining 2.90% on the day. The index closed high in its trading range and volume was a bit higher but well below average. The market started rallying four trading days ago after it looked like it might sell off. This has happened many times in the last few years and it makes calling tops a dangerous activity. The market is staging a year end rally and today leading stocks did well. The leaders index went to a new high on both a closing and an intraday basis. The relative strength line of the index is also very strong. This is positive. Volume will be hard to read this week due to the holidays. Thin trading can also lead to strong price moves. It’s a tough environment right now and while there are opportunities out there but getting to heavily invested is risky. The market is acting like it wants to go higher at least into the new year. What happens after that we will have to wait and see. Jerry
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