The market rallied on the first trading day of the year with the major averages up between 1.5% and 2% on the day. This was an additional FTD and along with the close above the 50dma brings the count on the market exposure model to +4. There wasn't much news to account for the rally and it may have been caused by banks and other financial institutions buying back assets after selling the last couple of weeks to build liquidity to show on their year end books. Commodities rose also. Volume was much higher than Friday's low pre holiday levels but was still below average. Leading stocks under performed the overall market as the leaders index rose .82% on higher but still below average volume. The SPX is the only major average above the 200dma, and we will have to see how the next few days action plays out to see if this was just a one day wonder. Jerry
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