Leaders Index 3-1-17

The market staged a strong rally today after Trump’s speech last night. After gapping higher at the open the major averages spent the rest of the session climbing. The COMPQ finished the day higher by 1.35% while the SPX was up by 1.37%. All the major averages, and most of the secondary averages closed at or very near their intraday trading highs. They all made new all-time highs. Volume was lower than yesterday, but still above average on both exchanges. You would like to see higher volume on a big advance like today, but yesterday’s volume was very high so beating it would have been hard. Large institutional players were likely buying today. Leading stocks were stronger as well. The leaders index showed pretty flat action with a decline of .11%. The reason for this was a 19.04% fall in CYBE due to a poorly received earnings report. With an index this size one stock can have an outsized effect. I have included a second attachment of a chart of the index with CYBE removed. It showed a 2.00% gain on higher and slightly above average volume. The index cleared its short term 9dma and 17dma, which is very positive. The index with CYBE is still stuck in a range between the 17dma on the top and the 50dma on the bottom. I am torn as weather or not to keep the index intact or remove CYBE. I will likely show both for a little while. Leading stocks were strong today as can be seen in the fact that only one stock in the IBD 50 was lower today. Ironically it was the number one stock on the list, NTES. There was a strong rally today in response to the speech last night. The major averages let their moving averages catch up for the last week and now have resumed their advance. They are a bit extended, but the market is acting like it wants to go higher. Jerry