Leaders Index 4-10-15

The market had a solid up session on a price basis yesterday. All the major averages opened higher and retained the strength during the session. All the major averages closed at their intraday highs, a sign of support. The SPX gained .48% on the day while the COMPQ was higher by .43%. Volume was lower across the board, showing that large institutional players were not heavy buyers in yesterday’s session. Leading stocks had a solid session as well with the leaders index rising .76% on lower and the smallest volume in weeks. The index set a new high on both a price and a relative strength basis, which is positive. You want to see quality growth stocks leading the major averages higher, but it would be better to have this done with strong volume that shows conviction among institutional players. The major averages seem poised to break into new high ground, which they have done several times in the recent past. Few of these have gone on to produce strong gains. Every time it looked like there was going to be a real trend in either direction there has been a sharp reversal that got things going in the opposite direction. There have been breakouts and early buy signals in recent days and these stocks can be played, but I would stand close to the exits and not let any gains, as small as they may be, get away. Jerry