The market opened lower but bottomed out early and staged a solid rally. The New York averages were the strongest today with the SPX higher by 1.14%. The INDU and the NYA both made new highs. The COMPQ and the NDX gained .99% and .81% respectively. Late strength saw all the major averages close at pretty much their highs of the day. Volume was lower across the board. It fell 26.21% on the Nasd and 8.46% on the New York. This shows that there was not heavy institutional buying today. Leading stocks rebounded as well with the leaders index gaining 4.35% on the session. The index closed near the top of its trading range and has bounced off its 50dma. Volume was lower but still not to bad. This is a tough market to deal with. Early yesterday I was pretty much convinced that the rally was over and we would go lower. It looks like enough liquidity can solve any market problem as Powell said there would in effect be unlimited liquidity. The market has responded and rallied. The rotation out of the growth leaders of this rally continues as the Nasd averages lagged. The major averages and the leaders index have bounced off their important 50dma support levels, and this is good. The semiconductor stocks, along with the small and mid-cap stocks continued to outperform. The market seems to have survived a test for now, but it is acting a little sloppy. A bit of caution is warranted. Jerry
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