Leaders Index 6-10-25

The market had a solid rally today. The major averages opened a bit higher and after bouncing around much of the day closed strong. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX rallied .63% and .66% respectively. The SPX gained .55%. Volume was higher across the board. Leading stocks had a rough session today. The leaders index fell 1.51% as leading growth stocks were hit. The index closed in about the middle of its trading range on lower and below average volume. The index closed below its short term 9dma for the first time since the rally began. The overall market had a pretty good session today with solid gains in the major averages. All the major averages closed high in their trading ranges, a sign of strength. The higher volume was good also and this is a recovery high for all the major averages. The issue today was leading stocks. The leaders index broke below its short term 9dma support, but held the more important 17dma. The low volume on the pullback is a plus. Quality growth stocks have been weaker for the last couple of days, as can be seen in the relative strength line of the leaders index. It is important for the index to hold its 17dma. The best growth stocks rise above their 17dma’s. The poor action in quality growth stocks today is something to watch, but overall the rally is still on track. Jerry