The market staged a bounce today after recent selling. The major averages opened higher and went on to solid gains. Selling came in and much of the gains were lost but late buying brought them back. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX gained 2.14% and 2.32% respectively. The SPX rallied 1.69%. Volume was lower across the board, showing light buying pressure on the rally. Leading stocks rallied as well with the leaders index gaining 2.74% on the day. The index closed in about the middle of its trading range on lower but still well above average volume. The index closed just below its 50dma. The market had a relief rally after the recent selling. The CPI report came in about as expected and the major averages gapped higher at the open and then went on to produce solid gains. Selling came in when reports of a Russian fighter downing an American drone over the Black Sea came out. Much of the gains were lost before late buying came in and all the major averages finished with solid gains. We were waiting for a bounce after the selling related to the banking situation. We got it today as there were good gains in the major averages and the COMPQ regained its 50 and 200dma’s. A main issue here was the volume. The market rallied on lighter volume than it sold off on. That is not positive action. There is likely some more negative action before a real rally can start. Jerry
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