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View Full Version : Leaders Index 7-1



Jerry Samet
07-01-2013, 11:32 PM
The market started the second half with a solid gain as the major averages gapped open and built on those gains early. They then started to sell off, losing the majority of their gains before closing near the lows of the day. Volume was much lower than Friday, as would be expected with the rebalancing on that day. The volume was also lower than any day last week, showing little buying conviction among institutional investors. Leading stocks outperformed the overall market with the leaders index rising 1.42% on lower and well below average volume. It also had lower volume than any day since the rebound began. The index is right below it’s 17dma and 50dma, which are at the same level. The COMPQ climbed above it’s 50dma but the New York averages have been unable to breach this important moving average. The rally attempt after the recent sell off still is not inspiring a lot of confidence. The leaders index and the major averages must show some solid gains on strong volume and possibly produce an FTD before before it will be advisable to get into the market with anything but small test positions. Jerry