The market rallied today after yesterday’s decline. The major averages opened higher and mostly worked their way up the rest of the day. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX gained .81% and .82% respectively. The SPX rallied .84%. Volume was mixed, higher on the New York and lower on the Nasd. Leading stocks were higher as well with the leaders index gaining .93% on the day. The index closed in the lower half of its intraday trading range. Volume was higher and just below average. The market continued its confusing action today. It rallies and sells off. All the major averages regained their 50DMA’s again. The market is going back and forth around this moving average in a tight pattern. Whenever it looks like the market might break down it rallies and when it looks strong it sells off. For what it is worth at this point the Summation Index, a good short term indicator I look at, turned up today. The leaders index held above its 17dma support and it is important that it continue to do so. The best leading stocks rally above their 17dma’s. I still believe that the market is more likely to work its way lower from here as we are not set up yet for a really strong rally. Jerry
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