Leaders Index 3-1

The market reversed the reversal it had on Thursday and had a bit of a reversal yesterday. The major averages rallied into the close to finish at the highs of the session with the SPX up .2% and the COMPQ gaining .3%. Volume was again the issue. It fell across the board, continuing the pattern of higher volume on the declines and lower volume on the rebounds. Leading stocks again outperformed the overall market as the leaders index rose 1.07% on higher and above average volume. The RS line of the index is improving but remains below it’s 50dma. The index itself closed almost at it’s 50dma. It would be encouraging if the index could break above this important moving average with conviction. The bottom line here is that it is difficult to know where the market is heading. It looks like it wants to go lower but the amount of money being pumped into the system is hard to fight. Only time will tell. Jerry