Leaders Index 11-28-17

The market put in a strong session today. After opening higher the major averages rallied and were strong all day. There was a sell off about half way through the session when North Korea launched another missile, but that was reversed when the Senate Banking Committee passed the tax reform bill with all Republicans voting for it. That seems to increase the odds of it passing the entire Senate. All the major averages and most secondary averages made new all-time highs and closed at their intraday trading highs, showing solid buying throughout the day. The Nasd averages lagged with the COMPQ gaining .49% while the SPX rallied .98%. In addition volume was higher across the board. This is just what you want to see on a rally day. Leading stocks had a good day as well with the leaders index rallying 1.26% with the index closing high in its trading range. The index held above its short term 9dma support level while volume was lower than yesterday but still well above average. Today’s action was encouraging. The recovery after the missile launch was impressive and the market rallied solidly into new high ground. The New York averages led today as weakness in the tech stocks, particularly the big cap ones, restrained the Nasd averages. The SOX was actually down slightly today with a loss of .08%. The greatest strength was in the small and mid-cap stocks with the RUT and MID higher by 1.53% and 1.30% respectively. We appear to be in rally mode and with the seasonally positive year end period ahead, barring something really bad happening, the market should rally into the new year. Jerry