Leaders Index 7-26-19

The market put in an overall positive performance. The major averages saw a little weakness early but then bottomed out and rallied for pretty much the rest of the session. There was some minor selling right before the close. All the major averages closed at or very near the top of their intraday trading ranges, a good sign. The Nasd averages were again the strongest with the COMPQ and the NDX gaining 1.11% and 1.10% respectively. The SPX was up a solid .74%. Volume was the issue yesterday. It was lower across the board, not what you want to see on strong price action. Leading stocks had a good day as well with the leaders index rallying 1.94%. The index closed high In its trading range and is back above all its short term moving averages. Volume was lower than Thursday’s level, but that was distorted by TAL. There was actually solid volume. The action of the market yesterday was overall positive. The major averages made good gains and went into new high ground. Leading stocks are acting pretty well. The leaders index is still in its consolidation, but it is very near its highs and it wouldn’t take much to cause a breakout and have the index move into new high ground. This would be very positive. The only real negative yesterday was the lower volume. You want to see higher volume as prices progress. It isn’t too much of a problem right now, but if it were to continue it would cause a wedging look to the charts of the major averages. Overall the preponderance of the evidence still points to high prices ahead. Jerry