Leaders Index 2-3

[Jerry Samet]

The market rallied strongly on Friday on a better than expected employment report. The major averages rose about 1.5% on higher and above average volume across the board. The current rally is accelerating with both the major averages and the leaders index pulling away from their important moving averages. All the major averages set new highs for the move and the Nasd joined the NDX in breaking above it's highs of early May. Leading stocks continued to outperform as the leaders index rose 2.06% on slightly lower volume. The index and it's RS line both set new highs for the rally. The index is getting extended from it's important moving averages and I have included a chart of the hi jump of the index. It shows that the index has reached very high levels against the 50 and 200 dma's but still has a little room on the shorter term 10 and 17dma's. The fact that the Nasd broke above the highs of last year put in question the bear market scenario. If the other major averages do the same soon it may indicate that the action of last year was not a true bear market but a monster correction in an on going bull. We will have to wait and see how this plays out. Jerry