Leaders Index 9-1-20

The market staged a strong rally today. The major averages opened higher and rallied for the remainder of the session. All the major averages finished at or very near their intraday trading highs, a sign of support. The Nasd averages again led the way with the COMPQ and the NDX gaining 1.39% and 1.50% respectively. The SPX was higher by .75%. Volume was higher across the board, according to Esignal. It was higher by 4.60% on the New York and 1.67% on the Nasd. Leading stocks had a strong session as well with the leaders index gaining 3.99% on the day. The index closed high in its trading range and made a new high on both a closing and an intraday basis. The relative strength line of the leaders index also made a new high. Volume was lower but still well above average. The action today was strong. The COMPQ and the SPX both made new highs on higher volume. This shows that large institutional players were buying stocks today. The action of leading stocks has improved and there are a solid number of new breakouts that are acting well. The leaders index is outperforming strong major averages, and this is always positive. The only real concern I have now is that things may be looking a little too good. The COMPQ is 28.09% above its 50dma. This is a level that is rarely seen. There are no real signs of trouble for the market now and the overall picture is positive, but it would not be unexpected to see the major averages take a rest and allow their moving averages to catch up a bit. Jerry