Leaders Index 1-5-6

The market had a solid up session today, with only one real negative. The major averages opened higher and mostly traded sideways the rest of the day. Late selling saw the major averages finish off their highs. The SPX closed low in its intraday trading range while the NASD averages finished in about the middle of their trading ranges. The COMPQ and the NDX gained .69% and .77% respectively. The SPX rallied .64%. Volume was higher across the board, but it was compared to a Friday when few were there. Leading stocks had a strong session as well. The leaders index gained 2.89% on the day. The index closed in about the middle of its intraday trading range on about flat volume. There were also a good number of good quality stocks breaking out today. The market had a good session today on the first real day of trading for the new year. The major averages opened strong and mostly held the gains until late. Some late selling saw the major averages close in the middle to lower end of their trading ranges. Almost all the gains were in the open. Aside from that it was a solid up day. The small and mid-cap stocks showed strong gains and outperformed the major averages. Market internals were also strong. Today’s action was positive, but the major averages remain stuck in sideways action. The major averages have been going essentially nowhere since the end of October. It looks like a fairly tight consolidation, especially on the weekly charts. Right now the market could go either way. We will have to see in which direction the market breaks from this consolidation. Jerry