Leaders Index 11-6-15

It was a generally favorable session for the market yesterday. The major averages opened lower and after bottoming about a half hour into trading spent the rest of the day working their way higher and finished at the top of their intraday trading ranges. The COMPQ was higher by .38% while the SPX was about flat with a decline of .03%. Much of the weakness in the SPX came from interest sensitive and dividend stocks that were hit as the market seems to be pricing in the increased possibility of a rate hike in December after the stronger than expected employment report. The ten year Treasury closed at a yield of 2.33%. Volume was higher on the New York and about flat on the Nasd. Leading stocks had a good day as well with the leaders index climbing 1.04% on higher but still below average volume. The index has been recovering after a few weeks of flat trading around the 9 and 17dma’s. Today’s action is a new high on both a closing and an intraday basis. The relative strength line of the index also broke above it’s important 50dma, a good sign. After lagging the overall market for for several weeks quality growth stocks have outperformed for the last week. It is positive when leading stocks act better than the major averages. The picture seems to be getting better. While not lighting any fires stocks are acting better. Since the weekly Coppock gave a buy signal on October 5th both the major averages and leading stocks have improved. It probably isn’t time to get really aggressive, there are stocks that are working moderately well. Jerry