Leaders Index 1-21-26

The market rebounded today and recovered much of yesterday’s losses after it looked like there was a deal on Greenland. It was a seesaw session and after a strong opening the major averages sold off and lost most of the gains. A rally after the Greenland announcement recovered the gains but some late selling saw the major averages finish off their highs, but still in the upper half of their intraday trading ranges. The COMPQ and the NDX gained 1.18% and 1.36% respectively. The SPX rallied 1.16%. Volume was mixed, higher on the New York and lower on the NASD. Leading stocks had a mixed session, but it was generally good. The leaders index was strong with a gain of 2.11%. The index closed high in its trading range on higher and well above average volume. This was a new high for the index on both a price and relative strength basis. The market recovered a lot of yesterday’s losses, but not all. The SPX and the NDX broke back above their respective 50dma’s, but the COMPQ closed fractionally below this important moving average. Market internals were very strong today and the equal weighted ETFs of the major averages were stronger than the major averages themselves. The averages of the small and mid-cap stocks made new highs, along with the semiconductor stocks. The leaders index is showing strong action by making a series of new highs on successively higher volume. Overall the rally is on pretty solid ground. The NASD averages are lagging due to underperformance in the big cap tech stocks, but the rally seems to be broadening out. It would be good to see the major averages, particularly the NASD averages, make new highs, but right now the rally looks ok. Jerry