The market bounced in a fairly constructive manor yesterday. The major averages opened lower but quickly found a bottom. They rallied most of the day until a little late selling saw the major averages finish off their intraday highs. All the major averages finished fairly high in their intraday trading ranges. The COMPQ and the NDX gained 1.03% and .85% respectively. The SPX rallied 1.09%. Volume was higher across the board, due to yesterday being an expiration day. Leading stocks had a very good day with the leaders index gaining 2.96% on the day. The index closed near the top of its intraday trading range on higher and well above average volume. We got a nice bounce yesterday after a couple of weak sessions. The major averages showed good gains, although they closed off their highs due to some late selling. Volume was higher, which is what you want to see on a rally day. The expiration but it still had a lot to do with that, but it still counts. We had a lot of damage done in the two days of declines following Powell’s press conference, but yesterday’s action helped. We need to see more positive action next week to keep yesterday’s momentum going. If we see good action next week the rally could right itself and get past last week’s negative action. The rally is wobbling a little right now, but it has not produced the type of action that would say it is over. Caution is warranted, but we might get through last week’s action if the market and leading stocks can stage a Santa Claus rally. Jerry
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