The major averages rallied strongly today, although the gains occurred at the beginning and the market treaded water the rest of the day. Closing prices were near the highs of the day and volume was much higher than Friday's short session but still below average. The market was very oversold and news of good holiday sales and yet more talks in Europe fueled the rally of about 3% on the major averages. Leading stocks outperformed the overall market as the leaders index rose 4.13%, but volume was below even Friday's level. The next line of resistance appears to be the declining 50dma's of the major averages. How they react as they approach this level will tell us a lot. Jerry
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