Leaders Index 12-16-19

The market did well while I was away as there was good news on the trade front on both China and the USMCA. The market continued last week’s positive action today as the market gapped higher at the open and spent most of the remainder of the session holding on to those gains. The Nasd averages were a little stronger with the COMPQ and the NDX gaining .91% and .97% respectively. The SPX gained .71%. All the major averages finished in the upper half of their intraday trading ranges, a sign of support. Volume was slightly higher across the board, gaining 1.40% on the New York and just .58% on the Nasd. Leading stocks were higher as well with the leaders index gaining 1.03% on the day. The index closed high in its trading range and above its short term moving averages that are providing support. Volume on the index was higher and above average, a good sign. The market is acting well right now. It rallied nicely last week and continued with a strong up move today. All the major averages are in new high ground and moved there today on higher volume. This shows real support under the market. Leading stocks are not acting as well as the overall market but are still doing all right. The leaders index is consolidating just above its short term moving averages, which are proving support. With the major averages in new highs ground we now should watch to see if quality growth stocks can follow. The leaders index is only a couple of percentage points below its old high and could rally there quickly. The picture looks positive and there is real accumulation under the market. Barring an unexpected news story I see no reason why the rally should not continue to the end of the year and possibly well into January. Jerry
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