The market had a solid rally on a price basis today. After opening with a strong gain the major averages hit their highs of the session in the first 90 minutes and were flat for the rest of the day. The New York averages led the way with the SPY higher by .96%, while the COMPQ was up .81%. The SPY closed near it’s intraday high while the COMPQ closed at it’s low. The fly in the ointment was volume. It was much lower and well below average across the board. Leading stocks were also up on the day with the leaders index up 1.05% and finished in the upper half of it’s trading range. Volume was the issue here also as it was very low and a decline from even Friday’s low level. The index, as well as the major averages remain below their important short term moving averages. Today’s action has to be considered disappointing. The low volume shows that large players were absent in the day’s rally. We need strong price gains accompanied by heavy volume in a move above the short term moving averages and then the recent highs to provide confidence that the market was righting itself as it has several times in the last year. If we don’t get that then lower prices are likely ahead. Jerry
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