The market had a good day today with the major averages opening higher and rallying through out the session. All the major averages closed at their highs of the day, reversing the pattern of the last three days. The COMPQ led the way higher with a gain of 1.03% while the SPY was higher by .78%. The 50dma provided support for both averages on this pullback, a positive sign. Volume was mixed on the day, slightly higher on the New York and a bit lower on the Nasd. Leading stocks had a solid up session as well with the leaders index higher by 1.11% and also finished near it’s intraday high. The index is now back above it’s important 17dma. Volume was slightly lower than yesterday but still above average. The index has been consolidating for two weeks now and needs to break into new high ground on convincing volume to really improve the picture. The action today was encouraging, but we must see solid advances into new high ground on strong volume by both the major averages and quality growth stocks to get the rally going again. Jerry
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