Leaders Index 3-9

The market continued to regain ground lost earlier in the week as there were small gains in the major averages on mixed volume. There were very small gains in the NYSE averages on slightly higher volume, which produced a stalling day on The NYA. This brings the level of distribution days on the NYA to 6 and 4 on the SPX. Volume on the Nasd was slightly lower so the distribution count there stayed at 3. This is a pretty high level of distribution and if any more develops it will be a big negative for the rally. Leading stocks continue to act better than the overall market with the leaders index rising .95%, sending the index and it's RS line into new high ground for the move. Volume on the index was lower and well below average, and this is a concern. The market is recovering from the decline at the beginning of the week, but it will take some real volume coming in to compliment price increases to make the market look stronger. Jerry