The market continued to build on recent gains yesterday. The major averages opened with moderate gains but spent most of the session working their way higher. All the major averages finished near their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gaining 1.88% and 1.82% respectively. The SPX rallied .921%. Volume was lower across the board. It fell 1.87% on the New York and 6.6% on the Nasd. Leading stocks were higher as well with the leaders index gaining 1.34% on the day. The index closed in about the middle of its trading range on lower but well above average volume. It also broke above the recent consolidation it has been in. The market didn’t give back any of Thursday’s large gains yesterday and even built on them. All the major averages have now cleared their respective 50dma’s and seem poised to stage something of an advance, but we can’t know how long it will last. Growth stocks seemed to lag a bit yesterday as the IBD 50 was down slightly, but the FFTY and the leaders index were higher. The market seems to want to rally here, but it is still a bear market rally. The weekly Coppock is close to turning up and may well do so next week. That would add a lot of confidence that the rally could be tradable. I don’t think it will be a very powerful rally and one should keep a close eye on short term indicators to help decide when it is likely over. I will be watching the A’s minus E’s and the Summation Index closely. There are likely some gains to be made here, but don’t get to greedy. Jerry
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