Leaders Index 10-20-14

The market had a strong day today on a price basis. The major averages opened higher and rallied throughout the session to close at their intraday highs. The COMPQ led the pack with a gain of 1.35% while the SPY was higher by .91%. The COMPQ closed slightly above it’s 200dma while the SPY finished just below this critical moving average. The problem was volume. It was down considerably across the board, which shows that large institutional players are not heavy buyers. Leading stocks were up as well with the leaders index higher by 1.33%. it also rallied from the open and closed near it’s intraday high. It remained above it’s short term 9dma but is still well below it’s important 50dma. Volume today was very weak, much lower than Friday and about average. Today’s action would have been much more positive had there been real volume. The major averages must regain their 200dma’s and the leaders index has to get back above it’s 50dma with real conviction for the picture to improve. Jerry