Leaders Index 12-18

The market had another strong move today that reinforced yesterday’s FTD. The rally gained strength as the major averages rose between 1.1% on the NYA and 1.46% on the COMPQ, bringing them to new highs for the move. Volume increased strongly across the board and was well above average all around. There was a Eureka signal today that adds to the confirmation of the FTD. Leading stocks had a good day as well as the leaders index rose 2.31% on higher and well above average volume. The index broke above it’s recent consolidation and this was confirmed by the RS line making new highs. There were also new breakouts like RAX and AKAM that are adding to the positive action. Much of the rally in the last couple of days is attributed to rising optimism about the fiscal cliff talks so there is event risk in the market if there is a set back, but the picture is improving. Jerry