The market staged another rally on Friday with the major averages up over 1.5% and a late rally enabled them to close near the highs of the day. Volume was down again across the board so there was little conviction. Leading stocks performed about in line with the overall market with the leaders index rising 1.68%. Volume was also lower and well below average. Big players didn't appear to be active. All the major averages are approaching their 200dma's(except the NDX which has crossed above it). Recent research done by Mike Scott shows bear markets in the recent past have climbed back to their 200dma's after a first down leg and have been turned back there, and this time may work out the same. If this rally takes the major averages above this level with conviction there could be some further upside. Jerry
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