Leaders Index 3-18-16

The market continued it’s recent uptrend yesterday with the major averages showing modest gains. The COMPQ was higher by .43% while the SPX gained .44%. The real strength lately had been in the DOW, which rallied .69%. The greatest strength in the secondary averages was again in the small caps and the semiconductor sectors. The RUT gained .95% while the SOX was higher by 1.36%. All the major averages finished high in their intraday trading ranges, a sign of strength. Volume was higher across the board and well above average. This was as a result of yesterday being an expiration day. Leading stocks were generally higher as well although they underperformed the overall market. The leaders index rallied .18% and closed in about the middle of it’s intraday trading range. It made a new high on both a closing and an intraday basis. The relative strength line of the index against the SPX has been trending lower for most of the current rally, showing that quality growth stocks have underperformed since the start. Volume on the leaders index was much higher and above average. This is the first time volume on the leaders index has been above average since the follow through on 2/17. There were some fresh breakouts yesterday and a few look ok. The real thing we are still missing is stocks showing strong gains after they flash buy signals. Until this happens worthwhile gains will be hard to come by and this will remain a struggling rally rather than a strong one. Jerry