Leaders Index 9-20-13

The market sold off yesterday in generally mild fashion. The major averages were lower all day and closed at the lows of the session. The declines were moderate, ranging from .7% on the SPY to .4% on the COMPQ. Volume was much higher on the day and well above average, but that was the result of an expiration day which always causes high volume. The session none the less was a distribution day on all the major averages. Leading stocks declined along with the over all market but their sell off was more moderate. The leaders index fell .20% on higher volume. The chart of the index, as well as the major averages, looks good even after the day’s decline. Individual leaders are acting well and so far the only stock in the index that has broken down is QCOR. The RS line of the index hit a new high on Friday. Overall the rally remains on solid ground. While we added a distribution day yesterday, an older one fell off, so the count remains a moderate three on the COMPQ and two on the SPY. Barring an unexpected event or news it appears that the market will be heading higher in at least the near term. Jerry