Leaders Index 1-22-18

The market staged a powerful rally today. The major averages opened higher and after word got out that there was a deal to reopen the government, at least for three weeks, the major averages took off and rallied into the close. The Nasd averages led the way with the COMPQ and the NDX higher by .98% and 1.05% respectively. The SPX was close behind with a gain of .81%. All the major averages closed at their intraday trading highs as there was strong buying coming in late in the session. There were new all-time highs across the board. Volume was mixed, higher and above average on the Nasd and lower but about average on the New York. It is good to see volume behind the move higher in prices. Leading stocks were higher as well with the leaders index rallying 1.46% on higher and well above average volume. The index closed high in its trading range and is well above all its short term moving averages. It has not yet made a new high like the major averages have, but there are a lot of high quality stocks producing attractive buying opportunities. There a couple of components of the index that have broken badly and I may replace them soon. The market is clearly in a strong rally right now with the gains so far in January the best we have seen in many years. All the major and secondary averages are in new high ground and other indicators are pointing to strength. The big advance we have just seen could well mean the market is a bit extended in the very short term, and some consolidation or even a small correction would actually be healthy. At this point though the picture is bright and it clearly looks like the market is in a real rally. You never fight a clear trend and it looks like higher prices are ahead. Jerry