Leaders Index 10-16-18

The market put in a strong performance today. After opening higher the major averages spent the rest of the session in a sustained advance that lasted the entire day. All the major averages closed at or very near their intraday trading highs, a sign of strength as buying continued throughout the session. Volume was considerably higher on the Nasd and slightly higher on the New York. Leading stocks had a strong session as well with the leaders index gaining 3.62% on the day and closing very close to its intraday trading highs. The index closed above its short term 9dma, although volume was a little lower and about average. The market finally put in a strong showing today. The Nasd averages were the strongest as the COMPQ and the NDX were higher by 2.89% and 2.94% respectively. The SPX was close behind with a gain of 2.15%. All the major averages regained their long term 200dma’s today and the strong volume was exactly what you want to see. It shows that large institutional players were buying stocks. Leading stocks rallied as well and the strong close in the leaders index is encouraging. It would have been better if there was higher volume as there was in the major averages, but the action was still positive. The major averages all broke back above their 200dma’s which are now support. This is not a follow through day because it is too soon in the rally attempt, it would have been one if it happened tomorrow. The day’s action was positive and the next target for both the major averages and the leaders index is their respective 50dma’s. If they can break this important resistance level, especially if there is a follow through, the picture will have improved a lot. Jerry