Leaders Index 1-8-19

The market put in another positive session today. After opening higher the major averages sold off and it looked like there might be a negative reversal. Then they started to advance and rallied the rest of the day. All the major averages finished near their intraday trading highs, a good sign. The COMPQ and the NDX were higher by 1.07% and .98% respectively. The SPX gained .97%. Volume was lower across the board, but the declines were small. Leading stocks had a strong session as well with the leaders index higher by 1.75%. The index closed high in its trading range and while volume was lower it was above average. The index is close to new highs that would take it above the highs of its recent consolidation. The relative strength line of the index made another new high. Today’s action added to the short term bullish case. It is looking more like a tradable rally is underway. There seems to be support under the market and quality growth stocks are showing better action. The major averages are coming up on their declining 50dma’s. They will have to break above this important moving average to produce a meaningful body. Maybe they would need some help from a news story like some sort of trade deal. Whatever is going to happen we will know soon. The 50dma’s are declining and the major averages are advancing. They will intersect soon. Jerry