The market rebounded today after the recent declines. After a sell off the quality of the bounce tells you a lot about weather or not the worst is over. Today’s bounce was not that impressive. The major averages bounced around between positive and negative territory before some late strength allowed them to finish near the top of their intraday ranges. The SPX gained .38% on the day while the COMPQ was higher by .53%. Both are still below their respective 50dma’s, which are now resistance. Volume was lower across the board. This shows that large institutional players were not buying as heavily as they were previously selling and continues the pattern of higher volume on declines. Leading stocks were higher as well with the leaders index gaining .49% on higher and about average volume. The index tagged it’s 50dma but rallied above it. The next hurdle is the declining 9dma. The first step to regaining it’s health would be breaking above this moving average with conviction. The market is looking weak right now and this is no time to get courageous. Jerry
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