The market had a fairly solid rebound yesterday as the major averages rose between .9% on the SPY and 1.3% on the COMPQ. Volume was mixed. IBD had it lower across the board but esignal and marketsmith had volume slightly higher on the NYSE. Much of that is likely due to IBM’s very high volume. Either way the rebound was not particularly impressive. The SPY barley regained it’s 50dma and the other major averages remain below this important moving average. The pattern of declines having higher volume than advances continues. Leading stocks performed about in line with the overall market as the leaders index rose .83% on higher and slightly above average volume. The index is sitting on it’s 50dma and closed fractionally above it. It has tagged this moving average three times in in the last three days and if it doesn’t rally quickly will likely break below it. The market looks like it remains in a downturn and the sidelines or short is probably appropriate. Jerry
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