The market took a pretty wild ride today and ended up with small gains. After opening higher the major averages sold off in a reversal until there were solid losses. A rally then started and they regained most of the losses. All the major averages finished in the upper half of their intraday trading ranges, a positive sign. The New York averages were the strongest with SPX gaining .22%, the COMPQ and the NDX rallied .08% and .18% respectively. Volume was lower across the board, which is good on a day like today. Leading stocks were generally higher as well with the leaders index rallying .35%, but closing in the lower half of its trading range. Volume was lower and below average. The market looked early like it would reverse most of yesterday’s losses with a solid gain. It then sold off hard, only to rally into the close. We are clearly seeing some so far mild corrective action after the recent advance. This is overall healthy action and so far important support is being held. The major averages tagged their 50dma’s again but held above them. These moving averages are still headed lower so it gives the major averages a little more room, but they must remain above this support. The leaders index is still holding above its short term 9dma. It is positive action when an index of quality growth stocks can remain above such short term support. So far the market seems to be consolidating the gains that began in the session after Christmas in a pretty constructive manner. The uptrend remains intact. Jerry
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