Leaders Index 8-26-20

The market put in a strong showing today. The major averages opened slightly higher and spent most of the remainder of the session rallying. The Nasd averages led the way again with the COMPQ and the NDX higher by 1.73% and 2.13% respectively. The SPX gained a solid 1.02%. All the major averages finished at or very near their intraday trading highs as buying continued into the close. Volume was a bit mixed. It was higher by 4.53% on the New York and lower by .31% on the Nasd, according to Esignal. The Nasd volume is so close that other data feeds could have different results. Leading stocks rallied as well with the leaders index gaining .90% on the session. The index closed in about the middle of its trading range and volume was higher and above average. The index is also back above its 9dma but still above its 17dma. The action of the market was positive today and all the major averages made new highs. Quality growth stocks continued to lag a bit although there have been several attractive breakouts in the last few days. The market is strong, and in fact may be acting a little too good. The COMPQ is very extended from its 50dma. When things are looking to good it is time to be a little cautious. I would not be surprised to see some consolidation or mild pullback in the major averages, but overall they are looking very strong. It would be encouraging to see leading stocks strengthen and make new highs along with the major averages. We may be a little extended in the short term, but the overall picture is still positive. Jerry