The market put in a nice positive reversal. Last night and before the open today the futures were showing large losses for the major averages. They opened sharply lower, but put in a bottom in the first ten minutes of trading. It was mostly higher from there and all the major averages finished at or near the top of their intraday trading ranges. The Nasd averages led the way with the COMPQ and the NDX gaining 1.43% and 1.17% respectively. The SPX gained .83%. Volume was mixed. It was higher by .90% on the Nasd and lower by 3.43% on the New York. Leading stocks had a strong session with the leaders index gaining 3.93% on the day. The index closed near the top of its trading range and made a new closing high. Volume was lower and below average. The action of the day today was positive. The market was set up for an ugly session and then buying came in and supported prices throughout the session. The strong close was a real sign of support. It would have been better to have solidly higher volume across the board, but it was still supportive. Important support held on the SPX and all the major averages are within a few percentage points of their recent highs. Leading stocks are starting to act better. This is a big positive. The new high in the relative strength line of the leaders index shows that quality growth stocks are outperforming the overall market, always a good sign. Futures as of this writing show some modest gains. We are not out of the woods yet and won’t be until the major averages make new highs, but today’s action was encouraging. Jerry
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