Leaders Index 8-28-15

There was a fairly quiet session yesterday for the first time in over a week. There was some weakness during the trading day but it appears there was a bid under the market and the major averages and late strength saw the major averages close near their intraday highs. The COMPQ led the way with a gain of .32% while the SPA was pretty much flat with a gain of only .06%. Volume was lower across the board, which would be expected on a Friday in late August. Leading stocks did a little better than the overall market with a gain of .05% and a close in about the middle of it’s intraday trading range. Volume on the leaders index was lower and well below average. The relative strength line of the leaders index is looking weak with lower highs and lower lows. I still think that the 200dma on the COMPQ is the key. If the COMPQ can get back above this level with some conviction it has a chance to move higher. If it can’t then lower prices are likely ahead. The chart patterns of the major averages and the leaders index are showing a similar pattern. After the low on Tuesday there have been three successive up days on lower volume each day. These are wedging rallies that are usually not successful. This pattern must be broken if there averages are to have any chance of moving higher. Jerry