Leaders Index 11-5-13

The market opened weak today and it looked early like there might be a significant sell off. The major averages bottomed in the first half hour and spent the rest of the session regaining their losses. The major averages closed near their highs of the day and the Nasd averages finished about flat while the New York averages had small losses. Volume was higher across the board, producing a distribution day on all the New York averages. Leading stocks mirrored the overall market as they were lower early and fought their way mostly back. The leaders index finished in the upper half of it’s trading range but still closed with a loss of .31%. The index held it’s important 17dma. Volume was higher and slightly above average, so there was distribution on the leaders index. The last couple of days have improved the picture a bit for quality stocks. The major averages, which have been leading, have taken a rest in the last week while the leaders have improved some what. The leaders index could be forming the right side of a cup. There is more work to do for the leaders and the major averages to resume the rally, and the after hours decline in TSLA could result in weakness tomorrow, but the outlook has improved a bit. Jerry