Leaders Index 6-30-20

The market rallied nicely today, building on yesterday’s gains. The major averages opened slightly higher and rallied for most of the remainder of the session. Late buying saw all the major averages finish at or very near their intraday trading highs, usually a sign of strength. The Nasd averages led the way with the COMPQ and the NDX higher by 1.87% and 1.96% respectively. The SPX was higher by 1.54%. The greatest strength was in the semiconductor stocks with the SOX gaining 2.70%. Volume was very close to yesterday’s levels. It was higher by .45% on the New York and lower by .99% on the Nasd. Leading stocks had a good day as well with the leaders index higher by 2.55% on the day. The index closed high in its trading range and is just below its recent high. Volume was higher but below average. The index is also above all its short term moving average support levels. Today’s action was positive as the market rallied solidly the whole session. The Nasd averages are both back above the 10,000 level, which should provide support if the market is to continue higher. Volume was an issue today as it was very close to yesterday’s levels. You would prefer to see higher volume on rally days. After a nice rally we saw a dip in both the major averages and the leaders index, It looks like we are coming back to challenge those previous highs in the rally. We should see a break above the highs in both the major averages and the leaders index , hopefully on volume, to signal that the rally will continue. We are very close on all the major averages and the leaders index so we should know soon if it will happen. Right now the weight of the evidence looks like it points to higher prices, but that can change quickly. Jerry