Leaders Index 8-11-14

The market had a positive session today, but late weakness brought it off it’s intraday highs. The COMPQ led the way with a gain of .70% while the SPY was higher by .28%. The COMPQ closed in about the middle of it’s trading range while the SPY finished near the bottom of it’s range. The COMPQ regained it’s important 50dma but the New York averages closed well below theirs. Volume again was an issue. It was considerably lower than Friday, continuing the pattern of high volume declines and low volume rebounds. We now have two rally days in a row off the lows on lower volume. If this continues the market will take on a wedging look. Leading stocks did a lot better than the overall market. The leaders index rose by 2.31% on higher volume than Friday, but it was still below average. The index broke above all of it’s moving averages and the relative strength line of the index went into new high ground. This is positive action. When quality growth stocks out perform the market it is a sign of possible strength ahead. It was a good day for the leading stocks and the Nasd averages. The small caps also did well with the RUT up by .93%. We are now in day two of a rally attempt so a follow through could occur as early as Wednesday. For now the lack of volume is a big worry and if the market is to regain it’s footing participation by institutional players will have to come in. Jerry