Leaders Index 2-22-19

The market staged another strong rally yesterday with good gains in all the major averages. The Nasd averages were the strongest with the COMPQ and the NDX gaining .91% and .79% respectively. The SPX was higher by .64%. All the major averages closed at their intraday trading highs, a sign of strength as late buying on strong volume came in just before the close. Volume was mixed, higher on the Nasd and lower on the New York. Leading stocks had a good session as well with the leaders index rallying 2.31% on higher but slightly below average volume. The index closed high in its trading range and made a new closing high, although not a new intraday high. The action was strong again as more encouraging news on the China trade front came out. It is looking like there could well be a deal and the market has been pricing in a deal for a while now. The Nasd averages are starting to move further above their 200dma support levels and now the RUT, representing small cap stocks, joined the other major and secondary averages above this important moving average. The rally is on solid ground now and it looks like the market wants to go higher. Both the major averages and quality growth stocks are acting well. If there is a deal on trade next week it could cause the market to rally higher, but certainly a good deal of this is already in the market, we don’t know how much. The bottom line is that the market is acting well and leading stocks are working. The leaders index is still in its consolidation as the intraday high in the current consolidation was on 2/5, but it looks pretty constructive. Jerry