Leaders Index 2-14

The market tried to sell off again today, but again rallied back to finish near the highs of the day. The major averages finished about unchanged except for the NYA, which closed down .33%. Volume was higher across the board so there was a distribution day on the NYA, but all the major averages remain above their 10dma's. Leading stocks held up well as the leaders index rose .25% on lower but slightly above average volume. The index has risen above it's 9dma for over two weeks now and the RS line set another new high. We have been rising on lower volume the last few days so we must watch for wedging, but this isn't a bit problem yet. Quality stocks continue to act well as new breakouts like SHOO and continuation moves like ZNGA and KORS gained more ground. The rally remains on solid ground and the long side is the place to be. Jerry