Leaders Index 7-14-15

The market continued it’s rally off the Greece sell off as the major averages were higher at the open and climbed for the rest of the session. All the major averages closed at their intraday trading highs, a sign of strength. The COMPQ rose .66% on the day while the SPX was up .45%. The SPX regained it’s 50dma while the COMPQ climbed further above this important moving average. Volume was slightly lower across the board. Leading stocks were higher as well with the leaders index gaining 1.92% on the day. The index closed off it’s highs but still in the upper half of it’s intraday range. The index closed right on it’s 50dma, but still has not risen above it. Quite a few components of the index have broken down, which shows that, with a few exceptions, quality growth stocks are generally struggling. Both the leaders index and it’s relative strength line are fighting to get above their respective 50dma’s. We will have to see if this rebound has legs. There has really been a trendless market for a long time now with with short term moves followed by violent reversals. It is tough to make progress in this type of environment, and a good degree of caution is still warranted. Jerry