The market staged another rally today. After opening higher the major averages pretty much spent the rest of the session holding on to most of the advance. The Nasd averages were strongest due to good moves in the large cap tech stocks. The COMPQ and the NDX gained .44% and .52% respectively while the SPX was higher by .30%. The Nasd averages closed in the upper half of their intraday trading ranges while the New York averages finished in the lower half of their trading ranges. Volume was lower across the board, but was close on the Nasd. Leading stocks were higher on the day with the leaders index gaining .71% and closing in the upper half of its trading range. The index is moving higher above its short term moving averages. Volume was lower and well below average. It was another overall positive session today, although the volume that we need to really confirm the move remains absent. The NDX made a new high for the move as it regained all the ground it lost in the last week or so. The other major averages remain below their recent highs, although they are all holding above their important 200dma’s. The market seems to be working its way higher and while several red flags that I talked about recently are still there we may be making our way to new highs for the rally. If we do then it is still in effect and the recent weakness was just some short term selling. Higher volume on the up days would do a lot to improve the picture. Jerry
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