Leaders Index 5-25-16

Yesterday’s rally continued today as all the major averages opened higher this morning. After rallying for about an hour the major averages leveled off and held their gains for the rest of the session. All the major averages closed high in their intraday trading ranges, a sign of support. The COMPQ finished with a gain of .70% while the SPX showed an identical advance. Volume was higher across the board, showing that large institutional players were in the market buying stocks. Leading stocks were higher, but rose less than the overall market.The leaders index was up .12% and the red candle shows that the index closed below it’s opening price. You would like to see quality growth stocks outperform the major averages as they did yesterday. That didn’t happen today. Yesterday’s rally seems to have been sparked largely by the ECB saying it would increase it’s easing policy and that continued today. The last two days action has been positive and it could well go higher in at least the short term. The next hurdle is for the major averages to break above their recent highs on 4/20. Jerry