There was no update yesterday due to a data problem at HGSI. The market yesterday sold off hard early but found a bottom and staged a positive reversal. The Nasd averages actually closed slightly higher. Those types of reversals can mean a short term bottom. The upside action continued today as all the major averages stages good rallies. After opening a little lower the major averages bottomed out and rallied into the close. All the major averages closed near the top of their intraday trading ranges. The Nasd averages led the way with the COMPQ and the NDX higher by 1.41% and 1.47% on the day. The SPX rallied .92%. Volume was lower across the board. It fell 4.80% on the New York and 16.97% on the Nasd. Leading stocks participated in the rally today as well. The leaders index gained .40% and closed high in its trading range. Volume was lower and below average. The market looked yesterday like it would have a very negative session yesterday but reversed higher and erased the early gains. These reversal can mean a short term bottom and we saw continued positive action today. Growth stocks outperformed in contrast to what we have seen recently. The COMPQ traded below its 200dma before it recovered and rallied. We will have to see if the action of the last couple of days can last. The Nasd averages may well make a run for their 50dma’s. while the SPX is still above this important moving average. It remains to be seen if this is just a short bounce in an on going decline. Jerry
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