Leaders Index 10-10-16

The market was higher all day today and ended with solid gains. The major averages opened higher, but made their intraday highs in the first thirty minutes and spent the rest of the session working their way lower. The COMPQ finished with a gain of .69% while the SPX was higher by .46%. Both closed in the lower half of their intraday trading ranges, a sign that there were sellers as prices rose during the session. Volume was lower across the board, showing that large institutional players were not heavily involved on either side of the market. Leading stocks were generally higher today with the leaders index gaining 1.85% on the day and closing high in it’s intraday trading range. The index also broke into new high ground on both a price and a relative strength basis. This is positive because we have been waiting to see the index overcome the resistance of it’s recent trading range. The index continues to to rise above it’s short term 9dma, a positive sign. We saw quality growth stocks lead the market into new high ground, which is good. The volume, however, was extremely low. You want to see strong volume on a move into new high ground. The major averages failed to get above their resistance levels. The Nasd averages are close to old highs but fell a little short. The SPX tried to break above it’s important 50dma but couldn’t hold the gains. We need to see the major averages and leading stocks move higher with conviction if this rally is to continue. Jerry