The market had a solid rally today as all the major averages showed good gains. The COMPQ led the way with a gain of .97% while the SPY was higher by .85%. The small and mid cap stocks continue to do well after their recent weakness. The RUT was higher by 1.47% and it regained it’s 200dma and is right on it’s 50dma. The MID was up 1.22% and it is now back above it’s 50dma. The COMPQ broke above it’s recent consolidation and is now at multiyear highs. The SPY also retook it’s 50dma. Volume was lower than Friday, but the action looks good. Leading stocks are acting well also and since the major averages are acting well I created a new leaders index. It contains 22 stocks in 17 different industry groups. The recent action of these quality growth stocks has been very good and they represent a good cross section of stocks that are doing well. The market is clearly rallying now and the long side is the place to be, but it is still probably a good idea not to get to carried away. Jerry
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