The market put in a very good session today. The major averages opened higher and rallied most of the day. A little late weakness saw the major averages finish off their highs, but they all closed high in their intraday trading ranges, a good sign. The Nasd averages led the way with the COMPQ and the NDX gaining 1.26% and 1.02% respectively. The SPX rallied .70%. Volume was slightly below yesterday’s levels across the board. Not what you want to see on a day of strong price gains. Leading stocks did very well today. The leaders index rallied 3.85% and closed high in its trading range. Volume was higher and well above average. Today’s action was positive. Not only were there solid price gains in the major averages but there was also good action in leading stocks. Many showed strong gains and there were a few producing buyable positions. This is the first time we have seen this since this rally attempt started. Most importantly it looks like the weekly Coppock may signal this week and confirm the latest follow through. If the COMPQ closes the week where it is now there will be a signal. We will have to see at the end of the week, but I think it will probably signal. This means that the follow through on 1/4/19 would be well confirmed. Today’s action significantly increases the chanced that this rally attempt will turn out to be a tradable rally, not a quick failure as we have seen recently. The major averages are now rising up into their respective 50dma’s and this moving average rules the charts. It will provide significant resistance. How the major averages react if and more likely when they hit this resistance will determine how far this rally will go. If they can’t break above their 50dma’s, hopefully with volume, the move may be short lived. Jerry
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