Leaders Index 2-9-21

The market took a break today after recent positive action. After opening little changed the major averages bounced around and closed pretty much the same way. All the major averages finished in about the middle of their intraday trading ranges. The COMPQ was higher by .14% while the NDX was lower by .06%. The SPX declined .11%. The greatest strength was again in the small and mid-cap stocks. The RUT was higher by .43% and the MID rallied .24%. Volume was mixed. It was lower by .41% on the New York and higher by 3.99% on the Nasd. Leading stocks outperformed and had a strong session today. The leaders index gained 3.56% on the day and clearly broke above its recent consolidation. The index finished high in its trading range and volume increased and was almost average. The relative strength line of the leaders index also made a new high. The market basically took a day off as the major averages were little changed. The real leadership continues to be in the small cap stocks that have led for the entire rally. The real item here is the outperformance and positive action of the leading stocks. The chart of the leaders index looks great and the index has now gained 54.73% since I created it on November 4th of last year on the day of the follow through. The market is stretched and I have mentioned many of the potential issues out there, but the simple fact is that the leading stocks continue to act well and the market rarely gets into a lot of trouble when quality growth stocks are acting well. Based on this I would say that we have not seen the top yet. Jerry