Leaders Index 7-6-20

The market put on an impressive session today. The market opened higher when Asian and European markets rallied on news of a possible new stimulus program by the Chinese government. All the major averages gapped up at the open and spent most of the remainder of the session holding on to the gains. All the major averages finished at or very near their intraday trading highs, a sign of strength. The Nasd averages were the strongest with the COMPQ and the NDX gaining 2.21% and 2.54% respectively. The SPX rallied a very respectable 1.59%. Volume was higher across the board. It gained 10.88% on the Nasd and 9.44% on the New York. This shows that large institutional players were buying stocks today. Leading stocks joined in the rally as well with the leaders index gaining 1.80% on the day. The index closed off the highs of the day but it was enough for new highs on both a closing and an intraday basis. Volume was higher and above average. The relative strength line of the leaders index also made a new high. The isn’t much you can say about today’s action that wasn’t good. The market opened strong and held the gains. The major averages closed high in their trading ranges on stronger volume. This is just what you want to see on a strong price advance. The Nasd averages made new highs by a good margin and the New York averages are approaching their recent highs. Leading stocks are doing well and that is a very positive sign. The market usually doesn’t get into real trouble when quality growth stocks are acting well. The current leaders index was formed on 4/8, the day of the follow through on the COMPQ. Since then it has advance 42%. Not bad for an index of 21 stocks. Right now the Nasd averages are getting extended from their important moving averages, but other than that there are not many dark clouds out there on the horizon right now. Jerry