Leaders Index 4-22

The market was weak early but gained strength during the trading session. The major averages closes near their highs of the day and the COMPQ regained it’s 50dma. Volume was lacking as it declined on both exchanges. This showed that there was not much buying enthusiasm on the part of large investors. The rally after last week’s decline is less than impressive. Leading stocks rose a bit more than the overall market as the leaders index climbed .78% on lower but slightly above average volume. It climbed a bit off it’s 50dma but is trading between a rising 50dma and declining 9 and 17 dmas . The direction the index breaks will tell us a lot about the direction of the market. In a QE environment it can go either way, but it looks like a break down is more likely. The rebound from the recent sell off has been weak and the likely direction of the market is down. Jerry