The market sold off early and then recovered after the downgrade. The major averages had a nice reversal and regained early losses ,finishing about unchanged. The COMPQ and the NDX gained .02% and .09%. The SPX was higher by .09% also. All the major averages closed near their intraday trading highs. Volume was mixed, higher on the NASD and lower on the New York. Leading stocks were a bit higher as well. The leaders gained .92% on the day. The index closed high in its trading range on higher but below average volume. This is a new high on both a price and a relative strength basis. The market put in a pretty good performance today. The major averages opened lower after Moody’s downgrade on Friday. The fact that the market could take the early losses and erase them is encouraging. A market that reacts well to bad news is a strong market. Leading stocks are also doing very well. The chart of the leaders index shows it riding it’s short term 9dma higher. Strong performance by quality growth stocks usually points to positive action. There are still a lot of mixed signals out there, but it is looking like a preponderance of evidence points to higher prices. Jerry
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