Leaders Index 6-1-16

It would have to be considered an overall positive session today. After opening weak the market found a bottom only ten minutes into trading. The major averages had moderate losses then started a rally that would carry them into the close. All the major averages were strong late and finished at or very near their intraday trading highs. The COMPQ finished with a gain of .08% and the SPX rose .11%. The real strength was in the semiconductors and the small caps with the SOX rallying .56% and the RUT up by .71%. Volume was lower across the board and about average, so large institutional players were not heavily involved. Leading stocks were modestly higher as well with the leaders index gaining .19% and closing high in it’s intraday range. Volume was much lower and well below average. The index made a new high on both a price and a relative strength basis. The market seems to have a bid under it. Recovering the early weakness and closing even slightly positive is a sign of support. The action of the major averages and some individual stocks has improved in the last week and a half. The next real hurdle will be for the major averages to break above their recent highs on 4/20. If they can do this with some conviction it will likely lead to higher prices. Jerry