Leaders Index 5-22-17

The market continued to rally today, extending recent gains. After opening higher the major averages rallied for most of the session. The COMPQ was higher by .82% while the SPX gained .52%. All the major averages closed at or near the top of their intraday trading ranges, a positive sign. Volume was lower across the board, showing that large institutional players were not buying heavily. Leading stocks had a good session as well with the leaders index gaining 2.36% on the day. The index closed high in its trading range and made a new high on both a closing and an intraday basis. It is now above all its short term moving averages. The relative strength line of the leaders index also made a new high. It is positive when quality growth stocks outperform the overall market. The major averages , along with the leaders index, have mostly recovered from the selloff last Wednesday. That is positive and suggests that the decline was an aberration. One thing that bothers me now is volume. The leaders index has rallied into new high ground over the last three days on successively lower volume. It is starting to take on a wedging look. The chart of the COMPQ looks pretty similar. The volume pattern on the New York averages is better. I would like to see a rally in the major averages and the leaders index on higher volume right now. This would break the potential wedging pattern. I will be away for a few days. The updates will resume over the weekend. Jerry