Leaders Index 11-7-14

The market didn’t do much yesterday. The major averages traded in a fairly tight range and finished little changed. The New York averages were up a bit while the Nasd averages fell slightly. The COMPQ declined .13% and the SPY was up by .03%. The SPY closed in new high ground and the COMPQ is just below recent highs. Both closed at or near the top of their intraday ranges, a sign of support. Volume was lower across the boars, showing that large institutional players were not active yesterday. Leading stocks were mixed as well with the leaders index declining .06% on higher and slightly below average volume. The index is sitting on it’s important 17dma and closed in the upper half of it’s intraday range. The index is looking a bit ragged on both a price and a relative strength basis. It is still ok as it is holding it’s 17dma and a lot of the damage that has been done is in a few stocks that have gotten hit really hard. The fact that individual quality growth stocks are blowing up on a pretty regular basis shows that is is increasingly difficult to navigate this late cycle rally. Both the major averages and leading stocks have been mostly consolidating in the last week or so and that could be healthy. The weekly Coppock has turned up and that adds confidence that we are in a tradable rally. Next week’s action will tell us a lot about where we are going, but for now the rally is intact. Jerry