The market rally continued today with the major averages opening higher. Some selling came in but it didn’t last and the upside resumed. The major averages rallied mostly into the close and finished near the top of their intraday trading ranges. The New York averages led the way with the SPX gaining 1.19%. The COMPQ and the NDX gained .86% and 1.06% respectively. Volume was mixed. It gained 6.33% on the Nasd and fell 3.17% on the New York. Since there was a follow through I created a new leaders index over the weekend. It contains 21 stocks in 15 different industry groups. I have included a text file with a list of the symbols. It is a little heavier in energy than I would like but that is where much of the leadership has been. The new index was higher by .79% on the day and closed high in its trading range. Volume was lower but still very high. The market continued to rally today and showed positive action. The major averages seem to be making a run for their 50dma’s. In fact the INDU broke above this level today. There is definitely a rally of yet to be determined strength going on, and it may go higher. The 50dma’s of the major averages are only a few percentage points above current prices. This will be real resistance for the major averages. A break above this moving average would be very positive. Overall I am skeptical that this rally will produce a strong advance. At most it would be a bear market rally. The follow through was not well confirmed and that adds to the risk. The next couple of weeks will also be eventful. Earnings season enters its biggest week this week as several important tech companies report their earnings. Any one could effect the market. Next week is the Fed meeting and the week after that is the election. The market may well move higher from here, but there are a lot of land mines out there. Jerry
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