The rally continued yesterday with the market posting solid gains. The major averages opened higher and worked their way up the rest of the session. The COMPQ gained .50% on the session while the SPX rallied .59%. The small and mid-cap stocks lagged with the RUT gaining .12% while the MID lost .19%. The major averages finished the day at or very near the top of their intraday trading ranges, a sign of support. Volume was lower across the board. Leading stocks lagged as well as the leaders index fell .57% on higher and slightly above average volume. The index closed in the lower half of its trading range but held the important 17dma. It is close to its old highs but has not fully recovered as most of the major averages have. Only the NDX has not broken into new high ground. The relative strength line of the index is putting in a pattern of lower highs and this must be watched. The rally is still on track as all the major averages made it into new high ground yesterday. We could be a bit extended so a pullback in the next few days would not be unusual, but the trend at least in the near term looks to be higher. Jerry
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