Leaders Index 10-14-14

The market staged a solid snap back rally early today. All the major averages opened higher and rallied for the first couple of hours. Then selling came in and they declined for the rest of the session before closing at their intraday lows. The COMPQ closed with a gain of .32% while the SPY was higher by .16%. After a big decline the quality of the bounce says a lot about the future direction of the market. Today’s action did nothing to improve the picture. Volume was a bit higher, but the small gains showed that institutional interest in stocks at these levels was missing. Leading stocks were generally higher as well with the leaders index gaining 1.56% on higher and well above average volume. The index remains well below a now flat 50dma. Unless we can get some strong upside action with real conviction it is likely that prices are headed lower. Jerry