The market staged a solid rally today. After the strong earnings reports yesterday the major averages opened higher and mostly held the gains into the close. All the major averages finished high in their intraday trading ranges. The Nasd averages led the way with the COMPQ and the NDX gaining 2.03% and 1.65% respectively. The SPX rallied 1.02%. Volume was mixed. It was lower on the New York but very close on the Nasd. It does look like it came in fractionally lighter, but other data feeds could have different results. It does look like there was no follow through today. Leading stocks had a good day as well with the leaders index gaining 1.74% on the day. The index closed in about the middle of its trading range on lower and about average volume. The index is now clearly above its 50dma. The market put in a nice rally today on good earnings reports from MSFT and GOOGL. The price gains were good, but volume was a little weak, particularly on the New York. There was almost a follow through today, but it would have been poorly confirmed if it had happened. The market continues to act pretty well in this rally attempt. There are more important earnings reports coming out next week that could move the market. In addition there is the Fed meeting and the employment report. There has been strength under the surface in the last few days and that is encouraging. Quality growth stocks are also doing well as can be seen in the leaders index breaking above its 50dma. The relative strength line of the leaders index also set a new high. All the major averages are just below their respective 50dma’s. They will have to break above this resistance, hopefully with some conviction, or this will be just a short bounce in an ongoing decline. Jerry
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