The market bounced back today after two days of selling. The major averages opened higher and mostly worked their way higher all day. All the major averages finished near their intraday trading highs. The NASD averages led the way with the COMPQ and the NDX gaining 1.77% and 1.85% respectively. The SPX rallied .48%. Volume was mixed, up slightly on the New York and down on the NASD. Leading stocks had a good day as well. The leaders index gained 2.84% and closed high in its trading range. The index closed right on its 17dma on slightly lower volume. The market bounced back today after two days of selling. It was a decent bounce, although it would have been a bit better to see higher volume on the NASD. The major averages had good gains and the growth and tech stocks that were hit so hard showed some good gains. The leaders index is sitting right on its 17dma, and it would be very encouraging if it were to get above this important moving average. The CPI report came in about as expected but it still set off a rally. Today’s action was good and the major averages, which had pretty small declines up to today are looking good. The NASD averages made new highs. The CPI report reinforced the belief that the Fed will cut rates next week. The rally is looking pretty solid right now. I don’t know if the pullback is completely over, but the overall picture still looks good. Jerry
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