Leaders Index 12-23-19

The market put in another modestly positive session today. The major averages opened slightly higher and mostly traded sideways for the rest of the session. Some late selling saw the major averages finish off their highs. The Nasd averages closed in about the middle of their trading ranges while the New York averages finished in the lower half of their trading ranges. The Nasd averages were a little stronger with the COMPQ and the NDX gaining .23% and .20% respectively. The SPX was higher by .09%. Volume was much lower across the board, as you would expect after an expiration session. Volume on the New York was off by 30.77% while it fell by 22.44% on the Nasd. With the holidays you would expect low volume over the next couple of weeks. Leading stocks again lagged the overall market with the leaders index lower by .35%. The index closed in the lower half of its trading range on lower and below average volume. The index remains above all its short term moving average support levels. The market acted well today as prices continued to rally into new high ground. Volume was lower as you would expect, but prices have continued to move further into new high ground. The major averages are acting well as there is a lot of underlying strength in the market. The really worrisome factor right now is the underperformance of quality growth stocks. The leaders index was lower today, mostly because PLMR dropped 5.82% on the day. The leaders index has been going sideways for almost a month as the major averages rallied. That has produced a lower relative strength line. The index is not alone. The FFTY is another good proxy for high quality growth stocks. It is also lagging, it declined .26% today. The chart of the FFTY is very interesting. There is a large cup and handle going back to Sept. of last year. In the handle is another, smaller cup and handle. These base inside a base patterns can be powerful. The chart of the FFTY is close to a breakout from both bases and the leaders index is also close to new highs. If they both breakout it would be very positive. Tomorrow is a half day and should be quiet so there will be no update tomorrow. They will resume on Thursday. I hope everyone has a good Hanukkah, Christmas, Kwanzaa, Fesstivus or whatever you celebrate. Jerry