Leaders Index 2-25-16

The market had another solid up session today. After trading flat early the major averages started an advance that lasted the rest of the day. All the major averages closed at their intraday trading highs, a good sign and made new highs for the move. The COMPQ gained .87% while the SPX rallied 1.13% as the New York averages led the Nasd. There was also strength in small and mid cap stocks along with the semiconductors. Volume was disappointing as it declined across the board. The solid price gains today would have meant more if there was strong volume. Leading stocks rallied as well with the leaders index gaining 1.37% and closing very near the top of it’s intraday range. Volume on the index was lower than yesterday and also well below average. The index made a new high on both a price and a relative strength basis. The biggest item today is that the SPX along with several lesser averages broke above their 50dma’s. This is important and the fact that several other averages did also is encouraging. Along with the SPX, the Dow, S%P 600, semiconductor index, and mid cap index all cleared this important moving average. The Nasd averages remain below their 50dma. Today’s action improved the picture, but it would have been more convincing if strong volume had been there. There was a bit of improvement in individual stocks but the pickings are still slim. The market still remains heavily influenced by oil so there gains could be quickly reversed, but today’s action was generally positive. Jerry