Leaders Index 1-21-14

The market opened strong today but couldn’t hold the advance and sold off until all the major averages were in the red. The major averages(except for the Dow) rallied back to close near their highs of the session. The COMPQ lead the way with a gain of .67% and set a new 52 week high. The SPY rose .28%. Volume was mixed, higher on the New York and lower on the Nasd. Leading stocks had a good session as the leaders index was up .99% on heavier volume than Friday, but still below average. The index has not had an above average volume day in eight trading days. A few days ago I said the index looked like it might be forming the right side of a saucer or cup pattern. The relative strength line set a new high today and may well be leading the index into new high ground. The last two trading days action might be forming a handle, and if the market is to continue higher we would likely see a breakout from this base on high volume. Overall today’s action is positive and the rally is intact. Based on this we will probably see the market head higher. Jerry