Chitty Chitty Bang Bang! Market Sputters Along After Roaring Rally

Major proxies were in limbo at midday, with the Nasdaq Composite Index looking a little stunned after yesterday's record-breaking run-up.

Major Indices INDEX CHANGE % VALUE Dow 42.83 +0.4% 10,569.96 S&P 500 9.29 +0.7% 1431.74 Nasdaq 6.16 +0.2% 3465.64 Russell 2000 2.62 +0.6% 479.32 TSC Internet 1.54 +0.2% 817.90 NOTE CHANGE PRICE YIELD 10-Year Treasury 20/32 101 16/32 6.289%

Head-turning moves on the indices are a common occurrence nowadays, but yesterday's action, especially in technology stocks, definitely surprised some market watchers. The Comp rose 254.37, or 7.9%, registering as the largest percentage gain and second-largest point gain ever for the index. The previous percentage gain record for the Comp was set Oct. 21, 1987, when markets were rebounding from the crash known as Black Monday. But the mood was hardly celebratory and optimism was tempered by the persistence of light volume, not to mention the fact that the Comp currently remains more than 30% off its March 10 high. Lately it was up 6 to 3466.

Dan Ament, assistant vice president and investment executive at Dain Rauscher in Minneapolis, characterized the action as a "retail rally," without a lot of institutional volume. "A lot of the professionals are questioning whether this rally can sustain itself," he said, though he added that if it does, the institutional traders can't afford to ignore it or remain on the sidelines. ...