Leaders Index 4-12-16

We had a reversal of yesterday’s action today. The major averages were a little lower early, but about an hour into trading they started to rally and continued strong the rest of the session. All the major averages finished at or near their intraday trading highs with the COMPQ gaining .80% and the SPX rallying .97%. Volume was higher across the board, which showed that there was some buying by large institutional players. Leading stocks lagged again with the leaders index rising .42% and closing in about the middle of it’s intraday range. The index is sitting right on it’s important 17dma support level. The index continues to consolidate around it’s short term 9dma and 17dma. The direction it finally breaks will tell us a lot, but the relative strength line of the index against the SPX has been weak for some time and is close to breaking below it’s 50dma. The major averages have been outperforming quality growth stocks, the opposite of what you want to see. The COMPQ and the NYA both regained their 200dma’s in what was a positive session for the overall market. There were no breakouts today in the Growth 250. On a big rally day you would expect to see a fair number of stocks participating. The market will not give a really clear signal of where it is headed. There is back and forth action and little real progress in either direction. It is a very difficult environment to make progress in. Jerry