Leaders Index 6-13-17

The market rebounded today and had a solid session, at least on a price basis. After opening higher the major averages worked their way up for most of the rest of the session. The COMPQ finished with a nice gain of .73% while the SPX was higher by .45%. All the major averages closed at their intraday trading highs for the second day in a row. The real issue today was volume. You want to see strong volume on a rebound, preferably more than on the selloff. It wasn’t even close today as volume was lower across the board. Leading stocks rallied as well with the leaders index gaining .56% on the day. The index closed just below the midpoint of its trading range, showing less strength than the major averages. The index came right up to its short term 9dma and must now overcome this resistance and move on to new highs. Volume mirrored the overall market as it was lower, but still above average. The candle is red because the closing price was below the opening price. We need a strong rebound after the two day sell off we just experienced. Today saw good price gains, but without the volume to accompany it the staying power of the move is in question. It will take large institutional players to really move the market higher for any length of time. The RUT and the MID hit new highs today along with the SPX. This is good. Today was a good start, but there must be more advances on strong volume to prove that the decline of Friday and Monday was another flash in the pan. New highs on the Nasd averages would be very positive. Jerry