The market staged a nice rally today, building on Friday’s late reversal. The major averages opened higher and mostly worked their way higher the rest of the day. The New York averages were a little stronger with the SPX gaining 1.86% and the COMPQ and NDX rallying 1.59% 1.68% respectively. All the major averages finished near their intraday trading highs. Volume was an issues today. It was down across the board. It fell 14.18% on the Nasd and 13.99% on the New York. Leading stocks were higher as well with the leaders index gaining 3.83% on the day. The index closed high in its trading range on lower and below average volume. The market rallied today in a continuation of Friday’s late reversal. The gains were strong, but the volume wasn’t there. This shows that large institutional players were not in there buying stocks heavily today. The day’s action doesn’t look like much in the charts of the major averages and the leaders index. A couple of the short term indicator I look at turned up, but this would support nothing more than a little short term strength. After the recent weakness we are due for some kind of a bounce and maybe Friday’s reversal will provide it. A little rally to mark the end of the second leg of this bear market would be welcome. It’s too early to tell if this will happen, but we can hope. Overall the market remains in a down trend and lower prices are ahead. Jerry
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