Leaders Index 3-15

The market traded mostly lower yesterday in a very narrow range and finished down slightly. The COMPQ led the way down with a .30% drop and a close in the lower half of it’s trading range. Volume increased across the board, due to expiration. This produced a distribution day for the COMPQ, but the overall distribution count is not yes at dangerous levels. Leading stocks followed the market lower with the leaders index falling .60% on heavier and well above average volume. The index had been pulling back after it’s recent advance and has been lower in five of the last six sessions. Three of those sessions have been on higher volume. The index closed right on it’s 9dma. It would be encouraging if the index held this moving average and much more important to stay above the 17dma. Right now the market looks like it wants to go higher, so the long side is the place to be, but a decent degree of caution isn’t a bad idea. Jerry