Leaders Index 4-13

The market sold off yesterday as the major averages declined between 1.2% and 1.4% on the day. Volume increased a bit across the board which gave us another day of distribution on all the major averages. This continued the recent pattern of sell offs on higher volume and rallies on lower volume. This is generally not a healthy pattern for the market. Leading stocks continued to do better than the overall market with the leaders index flat on the day. Quality stocks are holding up better than the overall market and the RS line of the leaders index made a new high on Friday. The additional day of distribution brought the count on the MEM down to +3, or 75% invested. Things could go either way at this point with IBD saying the market is in correction and the MEM still heavily invested(although down from a +7). Next week's action will tell us a lot about which way the market is going. Jerry