Leaders Index 5-31-16

It was a pretty wild session today. The major averages opened flat and then started a fairly decent selloff. The Dow was leading the way down, but everything was showing at least modest losses. It looked like the major averages would post a meaningful decline when in the last hour there was a rally that erased most of all of the losses. All the major averages closed high in their intraday trading ranges with the COMPQ showing a gain of .29% while the SPX was off by .10%. The really interesting was the volume. It was up considerably and was above average on both exchanges. The fact that there was a recovery from the lows is good. The late rally also allowed the major averages to avoid a new distribution day. Leading stocks were higher as well. The leaders index rallied .35% and finished in about the middle of it’s intraday trading range. Volume was much higher than Friday and well above average.The red candle means that the index closed below it’s opening price, a sign that there was some selling into strength. The index made a new high on both a price and a relative strength basis. The index is rising nicely above it’s short term 9dma. You want to see quality growth stocks outperforming the overall market. Both the leaders index and the major averages have acted well in the last week and the short term indicators seem to be pointed up. Jerry