Leaders Index 1-25-19

The market staged a powerful rally today. The major averages opened higher and held the gains for the rest of the session. News early that the Fed might slow the rate of running off its balance sheet and a temporary agreement to open the government supported the move. The Nasd averages were the strongest with the COMPQ and the NDX gaining 1.29% and 1.27% respectively. The SPX was higher by .85%. The semiconductors even built on yesterday’s rally with the SOX higher by 2.17%. The Nasd averages finished near the top of their intraday trading ranges while the New York averages closed in about the middle of their trading ranges. Volume was higher across the board, a good sign when prices are rallying. Leading stocks were strong as well with the leaders index gaining 1.85% and closing in the upper half of its trading range. Volume was lower and about average. This is a new high for the index on both a closing and an intraday basis. The relative strength line of the leaders index is also at a new high. The market staged follow through like action today as the major averages seem to have ended their short consolidation and resumed their advance. Quality growth stocks seem to be kicking in a bit as attractive buy candidates have scarce but are now growing in number. The leaders index has moved into new high ground and its relative strength line confirmed the move. It is encouraging when quality growth stocks are leading the market higher. It looks like the market is making a run for its 200dma. This will be major resistance and how the major averages act if they make it to this moving average will tell us if the rally can make significant progress from here. Jerry