The market opened a bit lower today and then bounced around unchanged most of the session, before closing with modest gains. All the major averages closed high in their intraday trading ranges. The COMPQ and NDX gained .16% and .33% respectively. The SPX rose .16%. Volume was lower across the board. Leading stocks were moderately higher as well with the leaders index gaining .39% on the day. The index closed high in its trading range on lower and below average volume. The market mostly bided its time today ahead of the big earnings news tomorrow. The major averages ended with moderate gains , although market internals were weak. We are at a bit of an inflection point here. The New York averages have a little more room, but the NASD averages are looking worrisome. Both the COMPQ and the NDX traded below their respective 50dma’s today before closing above them. Both have been playing around with this important support. The more they test this level the greater the chance that it will be broken. Right now NVDA’s earnings are the key. There is an important inflation report on Friday, but if the market doesn’t like NDVA’s earnings report the NASD averages in particular will be hit pretty hard. This would likely take them below their 50dma’s and put the rally in question. We will have to see how it goes. Jerry
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