Leaders Index 3-20-15

The market had a very strong rally yesterday. There were big gains in the futures before the open and the major averages gapped up at the open. They held the gains the entire session, even though some late weakness saw them close off their highs. The New York averages were the strongest with the SPX rising .90% and closing near it’s intraday high. The COMPQ gained .68% on the day, but it closed near the bottom of it’s intraday range. There were new highs made in the COMPQ, along with the RUT and the MID. Semiconductor stocks were strongest as the SOX was higher by 1.49%. This caused IBD to go back to a market in rally call as it does when major averages make new highs. Volume was higher across the board and well above average. Much of this was due to the fact that Friday was an expiration day, but it also showed that large institutional players were buying stocks. Leading stocks also had a good session. There were a solid number of new breakouts yesterday, such as CELG. It is a good sign when quality growth stocks continue to breakout and provide new buying opportunities. The leaders index was higher by .98% on the day and closed in the upper half of it’s trading range. Volume was much higher and well above average. This confirmed the price action of the index which moved into new high ground on both a price and a relative strength basis. The rally is building steam. There are some reasons to be cautious, like the high distribution count and how late we are in the cycle, but both the major averages and leading stocks are acting well and you must take advantage of it as long as it lasts. Jerry