The narrow leadership provided by the Dow Jones Industrials Index did what narrow leadership often does in this market, which is to simply pass the baton off to another group of narrow leadership.
With Friday’s post-earnings gap-up moves in four of the biggest of the big-stock NASDAQ names on Friday, Amazon.com (AMZN), Alphabet (GOOG), Intel (INTC), and Microsoft (MSFT), the big-stock leadership baton, at least for the day, was passed from Dow names to these and other big-stock NASDAQ names.
In the process, the NASDAQ Composite Index gapped up and ripped higher into all-time high price territory on heavy volume. Obviously, on its face, this is bullish action, with the index notching its biggest one-day gain since November 16, 2016. Notice also that this big gain comes after the index was looking a bit shaky along its 20-dema earlier in the week. What a difference a day makes!
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