The market put in a strong session today. The major averages gapped higher at the open and although there was a slightly upward they spent most of the day holding on the early gains. All the major averages finished near the top of their intraday trading ranges, a positive sign. The Nasd averages led the way with the COMPQ and the NDX gaining 1.47% and 1.37% respectively. The SPX posted a nice gain of .72%. Volume was lower across the board. It fell 2.05% on the Nasd and 5.49% on the New York. Leading stocks had a very strong session with the leaders index rallying 3.15% on the day. This is a new high for the leaders index on both a closing and an intraday basis. The index closed high in its trading range on much higher and above average volume. The relative strength line of the leaders index also made a new high, showing that quality growth stocks are outperforming the overall market. The market continued its positive action today. There were strong gains in the major average and all broke clearly above the recent consolidations they have been in. It would have been better if the volume came in higher, but the action was still encouraging. The Nasd averages made new all time highs on both a closing and an intraday basis, while the SPX made a new high for the rally. I have been saying for a few days that this would be very encouraging and it has happened. The leaders index broke out of its consolidation yesterday and continued strongly higher on heavy volume. This is very positive. Leading stocks are performing better than the overall market. This usually indicates that that the rally has further to go as the market rarely gets into real trouble when quality growth stocks are outperforming. We should see the rally continue. jerry
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