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Leaders Index 2-12-20
The market put in a good session today. Unlike yesterday the market held on to early gains and built on them. The major averages all closed at their intraday trading highs, a sign of strength. The Nasd averages were the strongest with the COMPQ and the NDX gaining .90% and 1.00% respectively. The SPX rallied .65%. Volume was mixed. It was higher by 1.61% on the New York and lower by 5.43% on the Nasd. Leading stocks did pretty well also with the leaders index gaining 1.82% on the day. It closed near the top of its trading range and volume was lower but still above average. The market acted very well today. All the major averages made new highs on both a closing and an intraday basis. The closes at the top of their trading ranges also showed strength as there was consistent buying throughout the day. It would have been better if volume was higher on the Nasd, but one day doesn’t make a trend. Further moves into new high ground should have strong volume. Quality growth stocks acted better today and outperformed the overall market. The leaders index is just a hair under its recent high and the relative strength line is heading higher again. The leaders index has been in a consolidation after a long advance and could be on the verge of breaking out. The consolidation was a bit sloppy but a move into new high ground, particularly on strong volume, would confirm the move into new high ground by the major averages. The market has come a long way, but there are few signs of trouble out there. The rally should continue. Jerry