Leaders Index 12-7-21

The market staged a strong rally today. The major averages opened with solid gains and worked their way higher for the rest of the session. All the major averages finished at or very near their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gaining 3.03% each. The SPX was higher by 2.07%. Small and mid-cap stocks also made sizable gains and the SOX made a new high. Volume was the only problem today. It was lower across the board, but it was close today. The New York volume was lower by only .26% and Nasd volume declined 1.54%. Leading growth stocks were very strong today with the leaders index gaining 5.46% on the day. Other ETF’s of leading growth stocks also did very well. The index closed in the upper half of its trading range on lower but still above average volume. There was a lot to like about the action of the market today. The price gains were very strong and the major averages closed high in their trading ranges. There was accumulation under the surface as risk on assets did well. There was more evidence that the omicron variant caused mild symptoms and there was a deal announced on raising the debt ceiling. This eliminates or reduced two important concerns. A very contagious covid variant that only causes mild illness could be a step toward ending this pandemic. Volume was the only issue today. If the market continues to rally on lower volume there could be a wedging pattern develop. Which is usually very negative. Overall the action today was encouraging. Jerry