Leaders Index 6-6-14

The market continued to improve on Friday with the major averages opening higher and holding the gains for the rest of the session. The COMPQ led the way with a gain of .60% while the SPY was close behind with a gain of .50%. All the major averages except the COMPQ are in new high ground and the highs in the NDX and the SOX show that tech and growth stocks are gaining steam. Even the small cap stocks, as seen in the RUT, are showing some life. All the major averages again finished at their intraday highs, a sign of strength. Volume was lower across the board, which is not what you want to see but is not unusual on a Friday in the summer. Leading stocks were higher with the leaders index climbing .12% and closing in about the middle of it’s trading range. This is less than the major averages but enough for a new high on a price basis. The index has been riding it’s 9dma which is a sign of strength. Volume was a bit higher than Thursday and also above average. The current rally looks a lot like a typical late cycle rally. It can be profitable but is not likely to show the kind of punch that early cycle rallies show. Last week the weekly Coppock gave a buy signal that was within the window that we use for confirmation of follow through days. That means that the current follow through is confirmed by the weekly Coppock and the %E’s. Only the Eureka has not confirmed. This increases the chance that the rally will be successful and builds confidence in taking new positions. It is looking more and more like this will be a tradable rally. Jerry