Leaders Index 10-16

The market had a second day of positive action today as the major averages rising just over 1% on the session. They rallied into the close to finish near the highs of the day and volume increased across the board. This showed that large investors are becoming more interested in the market. The major averages also broke above important moving averages, particularly the 50 dma on the COMPQ, that have been resistance near term. They all broke above short term moving averages like the 10 and 21dma's that I said needed to happen before they could look more encouraging. Leading stocks performed about in line with the overall market as the leaders index rose .98% on lower volume. This puts the index above the 9 and 17dma's that are so important for leading stocks. The action of the last two days in encouraging, but it is to early to say whether the corrective action of the last couple of weeks has run it's course. Jerry