The market had a snap back rally today as the major averages gained back part of what they lost yesterday. All of them were up about one and a half percent and finished near the highs of their trading ranges. Volume was disappointing as it fell considerably from yesterday’s decline, but the major averages are holding important moving averages. This is not the strong conviction you would like to see after a big sell off. Leading stocks did better than the overall market as the leaders index rose 2.75% on lower and below average volume. The index also closed well off it’s highs and was unable to get back above it’s 17dma. It would be good to see a strong rally back after a big sell off, but today’s action didn’t really impress. I would say that heroics in either direction would not be called for right now. Jerry
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