The market had a mixed session yesterday with a positive close. The recent weakness continued early but the market recovered and rallied into the close. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX fell .21% and .28% respectively. The SPX gained .13%. Volume was lower across the board. Leading stocks rallied as well. The leaders index gained 2.32% on the day. The index closed high in its trading range on lower but above average volume. The market looked like it was going to continue its negative action yesterday with significant early losses. The major averages turned around on talk of a potential deal on the shutdown. The rebound was encouraging, but if a potential deal falls through it could reverse itself quickly. Yesterday’s rebound was good, but it doesn’t change the overall picture. The market was in trouble before yesterday’s reversal and it still is. A reversal on a maybe deal is not likely to last. If a deal to reopen the government does happen it could cause the market to rally further, but the rally remains in serious trouble and a defensive posture remains the right position to be in. Jerry
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