Leaders Index 1-17-20

The market put in another encouraging session today. After opening with modest gains the major averages spent most of the remainder of the session holding on to them. Near the end more buying came in and the major averages rallied into the close. The COMPQ and the NDX gained .34% and .53% respectively. The SPX was higher by .39%. All the major averages finished at their intraday trading highs, a sign of support. Volume was higher across the board. It was up by 1.75% on the New York and 8.23% on the Nasd. Some of this was due to yesterday being an expiration day, but it was still higher volume. Leading stocks rallied as well with the leaders index gaining .61% on the day. The index closed high in its trading range and volume was higher and above average. The market continues to act well. We made new highs yesterday in all the major averages on higher volume. You can say that expiration had something to do with it, but it was still new highs on higher volume. This is positive. Leading stocks are acting good as well with the leaders index making a new high on both a closing and an intraday basis. There was also strong volume. The relative strength line did not make a new high but it still looks good. The market is currently in a strong rally phase and the real question to ask is how long it will last. I have said we are a little stretched right now, but markets can get a lot more stretched than you think they can. Right now all the shorter term indicators of the rally getting into trouble are flashing solid green lights. For now just ride the gains and enjoy it, I am. Jerry