Leaders Index 7-17-20

The market had a fairly quiet session yesterday, but with a positive bias. The major averages opened higher but quickly ran into some selling. They found a bottom and rallied for the remainder of the session to finish with modest gains. All the major averages closed high in their intraday trading ranges, a sign of support. The gains were pretty evenly divided with the COMPQ and the NDX higher by .28% and .18% respectively. The SPX gained .28%. Volume was mixed but very close to Thursday’s levels. It was higher by .55% on the Nasd and lower by 2.27% on the New York. Leading stocks did well yesterday with the leaders index gaining 1.90% on the day. The index closed near the top of its trading range and after bouncing off its 17dma it rallied to close back above its short term 9dma for the first time since Monday. Volume was a touch lower than Thursday. The market continued to act in an overall positive manor on Friday. It looks like it is taking a bit of a break after a pretty rapid advance. The charts of the major averages and the leaders index look good as they are all holding up well in this last weeks consolidation. The distribution day count remains modest and the action of quality growth stocks remains good. After a strong rally like we have seen it is good for the market to take a rest. So far the action looks pretty constructive and the rally still appears to be on solid ground. Jerry