The market opened lower after some weak economic news from at home and abroad. The major averages found a bottom and rallied mostly into the close. All the major averages finished near their intraday trading highs as buying continued into the close. The Nasd averages were a little stronger with the COMPQ and the NDX gaining .62% and .75% respectively. The SPX was higher by .40%. Volume was lower across the board. It fell 6.54% on the Nasd and 3.75% on the New York. Leading stocks rose as well with the leaders index gaining .53% on the day. The index closed high in its trading range on lower and below average volume. This is a new high on a price basis and the relative strength is also right about at a new high. The market acted pretty well today. There was mild early weakness after economic reports came in below expectations. The market was able to overcome this and move on to close with solid gains. This type of action is encouraging. There will be some important retail earnings reported this week that could effect the market, but the main item remains the 200dma’s of the major averages. They are close to current levels so we should know soon how the major averages will act. In previous bear market rallied the major averages bounced around this important moving average before turning lower. I still believe that will be the outcome. Jerry
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