Leaders Index 6-26

The market was up and down all day before rallying near the close then falling off the highs. The major averages closed near their highs of the day, but the gains were much less than yesterday's losses. Volume was mixed on the day, slightly higher on the COMPQ and lower on the New York averages. The market is caught in a bit of a bind. It doesn't seem to be able to rally but isn't breaking down either. Leading stocks did better than the overall market today as the leaders index rose 1.05% on slightly higher but still well below average volume. The RS line of the index set a new high today, showing the outperformance of leading stocks in the recent decline. These stocks are however in the same position as the market. None are really producing meaningful gains but they are not breaking down. The constant daily reversals make it difficult to make progress in either direction and caution is the best course of action. Jerry