The market had a moderate bounce today after yesterday’s selling. The major averages opened higher and advanced to decent gains, but much of those gains were later lost. The major averages finished with good gains, but much smaller than yesterday’s losses. The COMPQ and the NDX rallied .58% and .67% respectively. The SPX was higher by .51%. All the major averages closed low in their intraday trading ranges. Volume was mixed, higher on the New York and lower on the Nasd. Leading stocks had a good session as well with the leaders index gaining .69% on the day. The index closed low in its trading range on higher and above average volume. After a big sell off you want to look at the quality of the bounce. Today’s bounce was really not overwhelming. The action was ok, but a lot of the early gains were lost by the close. A finish low in the intraday trading range is not an encouraging sign. It would be good to see some strong action pretty quickly. Right now the overall picture still looks like we could see higher prices before the rally tops, but some good upside action would make me feel better. Jerry
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