Leaders Index 7-19

The market had a strong rally today . It opened higher and rallied into the close on news that there had been progress on a deal on the debt limit. The major averages closed near the highs of the day on mixed volume, higher on the Nasd and lower on the NYSE. Leaders also had a strong day with the index rising 2.63% on higher volume. Both the index and the RS line made new highs on the day. Leading stocks are outperforming the major averages, which is good, but the major averages remain caught between the 50dma providing support and the late May highs as resistance. We are in a whip saw, news driven market and until we break one of these levels there will be no real trend and it will be difficult to make much headway with anything but very short term trading. Jerry