The market rallied back strongly today with the major averages rising between 1.44% and 1.82% and finishing near the highs of the day. All the major averages except the NYA reclaimed their 50dma's. The problem with the day's action was again the volume. It declined across the board, continuing the recent pattern of selling off on higher volume and then rallying on lower volume. This is not the type of pattern you see in a strong market. Leading stocks did well also as the leaders index rose 1.46%, about in line with the overall market. Volume was lower than yesterday but still well above average. The index is sitting right at the important 17dma and it would be a very positive development if it could break above this resistance with conviction. We missed an FTD on the New York averages because of lower volume and the market could probably go either way at this point. The next few days should tell us a lot about the future direction of the market. Jerry
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