Leaders Index 12-18-14

It was another good day for the market. After gapping higher at the open all the major averages showed real strength all day. A late rally saw all the major averages finish at their intraday highs, a positive sign. For the second day in a row the major averages were up over 2% on the session with the SPY leading by rallying 2.40% and the COMPQ gained 2.24%. All the major averages are now back above their short term moving averages. Volume was lower than yesterday, which could be expected considering the Fed announcement yesterday, but it was also lower than the volume on Tuesday’s large decline. Leading stocks also had a good day, but were up less than the overall market. The leaders index was higher by 1.62% and closed near it’s intraday highs. Volume on the index was higher than yesterday and slightly below average. This showed that there was accumulation on this index. It is also back above all it’s short term moving averages. We also had a Eureka signal today.The last two trading days have certainly improved the picture. It is to early for a follow through day, but the MEM has gone to +2, or 55% invested. There are not many good set ups in quality growth stocks, so if you want to get some exposure an index etf is a good way to get started. Even if we do get a follow through it might be a good idea to increase exposure to the market carefully as there have been many failed follow throughs this year. Jerry