The market consolidated the gains of late last week in a constructive manor today. The COMPQ was up all day and led the major averages today with a gain of .54%. The New York averages were lower early but rallied to finish higher. The SPY was up .16%. A late advance let all the major averages to close at their highs of the day. Volume was lower across the board. This is not a bad thing when a market is consolidating recent gains so it is not a negative. Leading stocks had a solid advance also with the leaders index rising .71% on lower and below average volume. The index slightly regained it’s important 17dma, showing that quality stocks are repairing along with the overall market. Today’s action was encouraging as the market had two strong rally days on Thursday and Friday of last week and did not give up any of the gains. We are not far from recent highs and tomorrow will be day four of a rally attempt. We can get a follow through or a move to new highs will trigger a return to rally mode. The picture is improving and if the move higher continues it will be ok to test the waters on the long side. Jerry
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