The market rallied nicely today. After opening higher the major averages bounced around until late buying came in and all the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 1.62% and 1.47% respectively. The SPX rallied .95%. Volume was higher across the board, according to TOS. It gained 3.57% on the Nasd and 6.13% on the New York. This should produce a follow through, but IBD said that volume was slightly lower on the Nasd and so there was no follow through. Leading stocks were hit again, mainly due to weakness in energy stocks. The leaders index declined 2.74% on the day and closed high in its trading range. Volume was higher and above average and the relative strength line of the leaders index broke below its 50dma. The market staged a rally today. After bouncing around most of the day late buying came in and drove the major averages to solid gains. Volume figures were mixed. TOS had them higher on the Nasd and that would have produced a follow through. IBD said that it was lower and so they didn’t call one. Whichever is correct it would have been a poorly confirmed follow through. The weekly Coppock will not confirm. The %E’s are 26%, well above the top of the range and there was no Eureka signal. We may get some upside action, but I don’t think it will amount to much. The leadership in the shipping and energy sectors that have been the leaders recently continues to crack. We will have to see if any new leadership emerges, but either way the bottom is not in yet. Jerry
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