Leaders Index 8-1-17

The market had a positive tone today as it showed decent gains. The major averages were higher most of the session and all closed in the upper half of their intraday trading ranges. The COMPQ was higher by .23% while the SPX gained .24%. Volume was lower across the board on the day and below average on both exchanges. Leading stocks did better than the overall market with the leaders index rallying 1.26% and closing high in its trading range. This is a new closing high for the index, but only by a small amount. It is still in its recent trading range. The relative strength line of the index did set a new high, a good sign. Volume was lower and well below average. There was a pretty nice rally today on a price basis. The problem is that volume was not there. You want to see strong volume when the market tries to rally back from a reversal. It shows that large institutional players were in there buying. The chart of the leaders index looks ok as it is holding above short term support. The fact that quality growth stocks are acting a little better than the major averages is also positive as they often lead the market higher or lower. In short it looks like a clear cut move into new high ground for both the major averages and the leaders index would signal that the rally is resuming. If not there may be more sloppy action ahead. I will be away for a few days, the updates will resume next week. Jerry