Leaders Index 3-4-15

The market continued the pull back it began yesterday. After opening lower the major averages traded in negative territory all day. The SPX was the weakest, declining .44% while the COMPQ was off by .26%. The COMPQ finished at the top of it’s intraday trading range and right on it’s short term 10dma. The SPX closed in the upper half of it’s intraday range and bounced off it’s 21dma. Volume was mixed, higher on the New York and lower on the Nasd. This produced a distribution day on the New York averages while the COMPQ avoided one. Leading stocks had a generally good session and outperformed the overall market. The leaders index rose .30% on the day on slightly higher and above average volume. After advancing in a steady fashion for almost three weeks the leaders index seems to be taking a rest. It has gone sideways for the last two day while the major averages have pulled back. This is constructive as it allows the important moving averages to catch up to the price. The index is now consolidating above it’s 9dma. The relative strength line of the index set a new high. It is positive that quality growth stocks are acting better than the major averages. So far this pull back is pretty orderly and the rally seems to be intact. Jerry