The market had it’s first good day since the pull back started today. The major averages opened higher and were strong the rest of the session. Putin’s remarks that he didn’t want any more of the Ukraine(at least for now) signaled that the situation could be stable for a while. The major averages had good gains, with the COMPQ leading the way with a gain of 1.25% while the SPY was up .72%. Small and mid cap stocks did even better with the RUT up 1.41%. Volume was higher across the board, showing that there were some large players participating. Leading stocks had a good price move as well with the leaders index up 1.77%. The problem here was volume. It was the lightest in weeks and well below average. The index could be forming a cup pattern as it moves up the right hand side. A little better volume would add conviction. All the major averages and the leaders index are back above their short term moving averages, a good sign. The move was broad based with only three stocks in the IBD 50 down on the day. The COMPQ showed follow through like action today which is encouraging. The Fed announcement tomorrow will likely set the tone of trading in the near term. If the major averages can break above recent highs we could see a resumption of the rally. Jerry
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