Leaders Index 2-2-26

The market had a tough week last week, but steadied a bit today. The major averages opened a bit higher and quickly rallied to nice gains. They then mostly held them until a little late selling saw them close off their absolute highs, but still high in their intraday trading ranges. The COMPQ and the NDX rallied .56% and .73% respectively. The SPX was higher by .54%. Volume was lower across the board. Leading stocks generally had a pretty good day. The leaders index gained 4.42% on the day, recovering most of Fridays decline. The index is holding its 17dma, an important support level for leading stocks. The market sold off last week and several short term indicators turned down. The action last week, particularly on Friday was bad, but it didn’t do terminal damage to the rally. The market acted well today, and it really needed that. The major averages are above all their long and short term moving averages, which is good. Volume was a little light today, but Friday was heavy. The New York averages are near all time highs, but the NASD averages are back in the trading ranges they have been since early November. Gold and silver have taken big hits in the last few days after what looks like climatic activity. The rally looks like it is still ok, but must continue higher soon. The mostly positive action of leading stocks is also encouraging. The NASD averages in particular must show some gains, but they are being held back by large cap tech stocks. All in all, the overall picture is still positive. Jerry