Leaders Index 4-9

The major averages had a solid rally today and although they closed off their intraday highs they finished with gains of between .35% on the SPY and .48% on the COMPQ. Volume was higher across the board for the first time in a while. This is a positive sign of institutional support. The averages remain in their recent consolidations although the SPY and the DOW tried to break into new high ground. Leading stocks continued to underperform as the leaders index fell .18% on low volume. The index has been unable to get back above it’s 17dma and an increasing number of the component stocks in the index are looking broken. It must get above this important moving average with some conviction if the rally is going to continue. We are in a sloppy trading range market. Unless you are a very short term trader it is difficult to make money in this environment. Jerry