Leaders Index 9-1-17

The market put in another solid session yesterday. After two days of good gains the major averages took a bit of a rest, but still closed in positive territory. They opened higher and were modestly higher most of the session. A little late selling took them off their highs, and the Nasd averages finished in about the middle of their intraday trading ranges while the New York averages closed low in their trading ranges. The COMPQ closed with a gain of .10% while the SPX was higher by .20%. Volume was lower across the board, as you would expect on a Friday before a three day holiday weekend. Leading stocks continue to outperform the overall market with the leaders index rallying .91% and closing high in its trading range. The index again set new highs on both an intraday and a closing basis. The relative strength line also went to new highs. After consolidating for a few days and bouncing off its important 17dma support level on 8/29 the index has rallied solidly to new highs. Volume on the index mirrored the major averages and was very low. The market is acting well right now. After selling off in what looked like it would lead to at least a small correction the major averages again rallied. This continued the pattern of the last two or three years of very short and shallow corrections followed by rallies to new highs. The major averages are not in new high ground yet but it looks like they are headed there. The fact that quality growth stocks are outperforming the overall market is positive. It looks like the market wants to go higher. Jerry