Leaders Index 2-1-22

The market continued to build on the positive action of the last couple of days. After opening with a little minor weakness the major averages treaded water for much of the session. Late buying came in and the major averages finished near their intraday trading highs with solid gains. The COMPQ and the NDX were higher by .75% and .60% respectively. The SPX rallied .69%. Volume was mixed. It fell 5.96% on the Nasd and gained 4.78% on the New York. Leading stocks gained ground as well with the leaders index higher by a modest .29%. Other ETFs of leading stocks were up a little more. The index closed high in its trading range on lower and below average volume. The market looked like it would take a break today after a couple of up days. Late buying came in and the major averages rallied into the close and posted moderate gains. I tried today to produce a new leaders index as I do after a follow through. I am skeptical of this call but I decided to build a new index anyway. Unfortunately I was not able to find enough stocks to create an index. In addition a high number of the ones I did find were concentrated in the energy sector. This is not an encouraging sign. On the other hand a couple of the short term indicators I look at, the Summation Index and the A’s minus E’s, turned up today. There were some well received earnings reports after the close and the futures are up at the time of this writing. There will be more important companies reporting latter this week. I think this is a low probability follow through, but anything is possible in the stock market. There are not a lot of attractive set ups out there, but I guess you could give some a try. Jerry