The market rallied sharply today after it’s recent sell off. After opening higher the major averages rallied into the close to finish at their intraday highs. The SPX gained 1.24% on the session while the COMPQ rallied .98%. Volume was higher across the board, so there was buying by large institutional players. Leading stocks also recovered with the leaders index up by 1.42%. The index closed near it’s intraday high and just above it’s 17dma. Volume was lower than the decline yesterday, but was still above average. The buying pressure in the leading stocks was less than in the major averages. The COMPQ closed back above it’s 50dma while the SPX bounced off it’s 200dma. This sharp upside action today shows how difficult it is to play the market in either direction in this environment. Any positions should be taken carefully with tight sell points. Jerry
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