Leaders Index 1-22

The market continued recent positive action today. It opened slightly lower but strengthened during the day and rallied into the close to finish at the highs of the day. This is what you want to see in a rally. All the major averages are at new highs for the move and although volume was lower than Friday(as you would expect after an expiration day) it was above average on the Nasd and average on the NYSE. Leading stocks continued to act well as the leaders index rose 1.09% on higher and above average volume. This type of accumulation is very encouraging. Both the index and it’s RS line made new highs for the move. There are signs that the market is getting extended, such as the % of NYSE stocks over the 200dma hitting 82%, but this type of indicator is a general warning and does not signal an immanent top. Both the major averages and quality stocks are acting well and it looks like higher prices are ahead. Jerry