Leaders Index 7-18-16

The market opened strong and had a slight uptrend for the rest of the session. All the major averages closed at or very near their intraday trading highs. The COMPQ finished with a gain of .52% while the SPX was higher by .24%, nice gains. Volume on the day was lower across the board, not what you really want to see on a day when the major averages closed at either all time highs or highs for the move. Leading stocks were higher as well with the leaders index rallying 1.41% and closing in the upper half of it’s intraday trading range. The index spent the four days I was away last week consolidating recent gains in a pretty constructive manor. It traded in a tight range and allowed the 10dma to catch up, but it didn’t violate this short term moving average. The index set a new closing high today as well as a new intraday high. The fact that the index held the 10dma is positive. It would have been better to see higher volume today, but it can come in if the index continues higher. The action of the market and the leading stocks is generally positive, at least in the short term. Everyone knows that I think the markets are being driven higher by central bank policies, but this can go on for a long time. Right now it looks like we remain in a trading range where only short term trading is profitable, and that only marginally. Most stocks are not producing the kind of gains you really want, but there are opportunities to make some modest progress. Jerry