Wednesday, March 15, 2006

Late Day Strength

Today's market action was great. The market was weak early, but built on its strength late in the day to post a solid finish. Volume levels rose, making for back-to-back accumulation days.

Breadth was again solid, and the number of new highs expanded nicely. Moreover, the Dow Transportation (TRAN) index surged to a new high. I heard some technicians complaining about the "Dow non-confirmation" yesterday, and the industrials made a new high but the transports did not. After today, you can scratch that concern off of your list.

Networking stocks have been leading the action, which bodes well for the Nazz. I expect it to play catch-up and for more stocks to break out.


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