The market had a generally positive tone today even with some volatility related to Comey’s testimony. After opening higher the market bounced around and some late strength saw a solid close. The COMPQ was higher by .39% while the New York averages lagged as the SPX was higher by only .03%. The Nasd averages closed at the top of their intraday trading ranges and made new all-time highs. The New York averages closed in about the middle of their trading ranges and are near but not at new highs. Volume was higher across the board and above average on the Nasd. It is a good sign to see the market move up on higher volume. It shows that large institutional players were buying stocks. The greatest strength was in the small cap stocks and the semiconductors. Leading stocks had a good day as well with the leaders index rallying 1.48% on higher and above average volume. The index closed high in its trading range and posted new highs on both a closing and an intraday basis. The relative strength line of the index is also leading the market into new highs. The market continues to act well. Quality growth stocks are acting better than they have in a long time and many are producing meaningful gains. The Nasd averages are the leaders, but today’s relative strength in the small and mid-cap stocks was encouraging. It would improve the picture a lot if the New York average along with the small and mid-cap averages would join the Nasd averages and the leaders index in new high ground. Such a broadening out would likely give the rally more legs. Right now everything looks positive. Jerry
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