Leaders Index 10-31-14

The market had a powerful rally yesterday. Over night the Bank Of Japan announced a large increase in money printing and stock markets around the world took off. The major averages gapped higher at the open and held those gains the rest of the session. The COMPQ led the way higher with a gain of 1.41% while the SPY was up by 1.17%. All the major averages, and the secondary ones as well, finished the session at or very near their intraday highs, a sign of strength. Volume rose dramatically across the board and was well above average. This shows that large institutional players were buying stocks with real conviction. New all time highs or multiyear highs were made by all the major averages. Leading stocks were higher as well with the leaders index up by 1.07% on lower but still above average volume. The index is at a new high on a price basis, but not a relative strength basis. The index continues to rise above the short term 9dma, a real sign of strength. The strength we have seen is encouraging and lends a lot to the bullish case. Yesterday was the last day that the weekly Coppock could signal and confirm the latest follow through. The indicator turned up last week and so confirms the rally. The only item on this that must be watched is the fact that the Coppock turned up by less than one point. I usually like to see more of a turn than that to have real confidence so next week’s action will be important. The rally is gaining real strength and it appears that higher prices are ahead. Jerry