Follow the Leader - 2 Charts XLY & QQQ

I'm sure you can go through a ton of charts and figure out who some of the leaders are. We are going to stick with what's been helping us and take a look at two simple charts today: the Consumer Discretionary Sector ($XLY) and the Nasdaq100 ($QQQ). On October 17th, we said that these two names would be our tell for the market. At the time, both of these were battling with their 200 day moving averages. We said that if they can hold on to those levels and not roll over, this would be positive for the market. Sure enough, both held and went on to make new highs. Meanwhile, the S&P500 rallied close to 100 points over the next week and half.

Let's take a look:

In both of these charts, September Resistance became October Support. We've been watching these leaders hold on to their gains and the rest of the market has reaped the benefits. I know there are a few more leading charts out there that some of you count on as a tell. These have been working for us lately so I thought that I would share.

Great trading week ahead. Go get 'em!