Leaders Index 11-16-15

After the selloff of the last two trading days you look for a bounce and see how strong it is. The quality of the bounce is critical. After opening a bit lower and bouncing around for a couple of hours the major averages began a steady advance into the close. The SPX led the way with a solid gain of 1.49% while the COMPQ rallied 1.15%. All the major averages finished the session at their intraday highs. The problem with today’s action was volume. It was lower across the board, showing that large institutional players were not buying nearly as heavily as they were selling for the last two days. Leading stocks rallied as well, but less than the overall market. The leaders index rose .40% on the day, much less than the overall market. Volume was much lower and below average. The index traded above it’s important 17dma but couldn’t close above it. It finished in the upper half of it’s trading range and just below this important moving average. The relative strength line of the index declined further below it’s 50dma. The COMPQ regained it’s 200dma today while the SPX remains below it. The price action today was good, but you need volume to confirm it. We need to rally further on strong volume to improve the picture. Jerry