The market started off lower today, but bottomed out after the first half hour. There was a steady rally after that, with the Nasd averages leading the way. The New York averages recovered early losses and closed the session about flat while the Nasd averages showed modest gains. The SPX closed about unchanged while the COMPQ gained .33%. All the major averages closed at their intraday highs, which is a positive sign. Volume was mixed, higher on the Nasd and lower on the New York. Leading stocks had a positive day as well with the leaders index gaining 1.32% on very high and well above average volume. The index closed near the top of it’s intraday range. It now has a little room above it’s 17dma and is just below it’s short term 9dma. Much of the gain came from the 16% gain in SKX on huge volume, although a large volume spike in FB also contributed. The recovery from sizable early losses is a sign of strength and may foreshadow some more strength. We remain in a very difficult market with few stocks showing any worthwhile gains. Expectations should remain modest as we are very late in a cycle and in a trendless market. Jerry
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