The market put in a positive reversal today. After opening with significant losses the major averages made a bottom early and spent the rest of the day rallying. Large early losses turned into small to moderate gains by the major averages. The Nasd averages were the strongest with the COMPQ and the NDX higher by .38% and .41% respectively. The SPX was pretty much flat with a gain of .08%. All the major averages finished near their intraday trading highs as there was consistent buying into the close. This is positive. Volume was higher across the board. It was higher by 8.30% on the New York and 11.38% on the Nasd. This is also positive. Leading stocks were higher as well with the leaders index gaining 1.55% on the day. It tagged its 50dma at the lows then rallied to close above its short term 9dma and 17dma. The index closed high in its trading range and volume was slightly higher than yesterday and above average. The market looked like it would resume its selloff early, then is reversed higher and regained the early losses, closing slightly positive. This along with the higher volume are positive and maybe the market is trying to put in a short term bottom. If there is a rally attempt is would likely make a run for the 50dma’s of the major averages. This would be significant resistance. After the action today this is a real possibility. I still think that we will see lower prices ahead, but an attempt to rally to this important moving averages could well happen. Jerry
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