After selling off last week I guess the market was due for a rebound. Early on there was news that Greek banks would be receiving a cash infusion and a Fed board member said rate hikes were not imminent. This was enough to get a rally started. The major averages had strong gains at the open and drifted higher the rest of the session and closed at their intraday highs. The COMPQ gained 1.16% while the SPX was higher by 1.28%. Volume was lower across the board, which showed that large institutional players were not heavy buyers today. Both the SPX and the COMPQ regained their 50dma’s today, which is a good sign. Leading stocks were higher as well with the leaders index performing about inline with the major averages by gaining 1.27%. The index is sitting on a convergence of the 9 and 17dma’s, but did not get above these important short term moving averages. This big a gain in the major averages usually produces a larger gain in quality growth stocks. Volume on the leaders index was lower than Friday and well below average, showing light buying pressure in leading stocks. The market continues in a trendless whipsaw pattern that is very difficult to trade successfully. Until we get a trend in one direction or the other a strong cash position is a good idea. Jerry
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