The market put in a solid rally today, after yesterday’s decline. The major averages opened higher and mostly spent the session working their way up. All the major averages finished close to their intraday trading highs. The COMPQ and the NDX gained .95% and .85% respectively. The SPX rallied .71%. Volume was mixed. It was lower by 7.22% on the New York and higher by 6.25% on the Nasd. Leading stocks had another good day and are off to a strong start for the new year. The leaders index was higher by 1.79% and closed near the top of its trading range. Volume was lower but still pretty strong compared to recent weeks. The index 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. The action of the market today was pretty good. The major averages recovered a good chunk of yesterday’s losses. It would have been better if the volume was higher on the New York, but the higher volume on the Nasd is encouraging. This is even compared to yesterday’s high volume. The most encouraging thing right now is the recent outperformance in leading stocks. The leaders index broke into new high ground and also broke out of a consolidation dating back to late November. There have also been a decent supply of new breakouts recently. It is always a good sign when quality growth stocks outperform the overall market. We will have to see how the outcome of the election effects the market over the next few days, but it looks like the market is trying to work its way higher. Jerry
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