Leaders Index 10-2-13

The market opened lower today and it looked like it was going to be a very negative session. After bottoming early the major averages spent the rest of the day rallying back. They closed at the highs of the trading day with small losses. Volume was slightly lower across the board. The small losses and lower volume prevented another distribution day, which looked likely early in the session. The COMPQ continued to be the leading index with only a .08% decline, but the SPY matched it today with a loss of only .07%. Leading stocks had another solid day as the leaders index rose .99% on lower and below average volume. The index is now in new high ground on both a price and a relative strength basis. The major averages are holding up well in the face of uncertainty coming from Washington, while leading stocks continue to do well and outperform the overall market. As long as this continues the long side remains the place to be. Jerry