Leaders Index 11-6-17

The market staged another positive session today. After opening higher the major averages rallied through most of the day. The Nasd averages led the way as the tech stocks were generally strong. The COMPQ was higher by .33% while the NDX gained .29%. The New York averages lagged a bit with the SPX gaining only .13%. The greatest strength was again in the semiconductors as the SOX was higher by 1.34%. All the major averages closed at or very near their intraday trading highs, a sign of support. Volume was mixed on the day, slightly lower on the Nasd and a bit higher on the New York, according to Esignal. Leading stocks were solidly higher as well with the leaders index rallying .62% and closing high in its trading range. The index made new highs on both a closing and an intraday basis and is rising nicely above its short term moving averages. The relative strength line of the index also made a new high. It is a positive sign when quality growth stocks outperform the overall market. All the major averages made new highs today as the rally continued. Leading stocks are also acting well and the responses to earnings reports have been generally positive. The strongest sector right now is the semiconductor sector. This is usually a good sign as historically strength in this sector portends higher prices in the general market. The SOX index has been rallying strongly and is starting to take on a parabolic look, usually meaning it is in for a consolidation or slight pullback. The Nasd averages also look like they are getting a little extended short term and may be due for a rest. That aside, the weight of the evidence still points to higher prices. Jerry