Leaders Index 3-27-15

The market had a mild rally today. The major averages saw some gains at the open and then pretty much just held their ground the rest of the session. Some late strength allowed all the major averages to finish at their intraday highs. The COMPQ gained .57% while the SPX gained .24%. The New York averages remain below their 50dma’s while the Nasd averages have held this important moving average. Volume was lower across the board, showing that large institutional players were not heavy buyers. The declines have come on much higher volume than the advances, not what you want to see. Leading stocks rallied today with the leaders index gaining 2.30% on the session and finishing near it’s intraday high. The index is now just a hair above it’s 17dma and continues the bounce off the 50dma. The problem is that there has been little volume on the bounce. This lack of conviction is troubling. It will be interesting to see if the leaders index can remain above the 17dma. If not it will be a very negative sign. Overall the market is in a precarious position. If the rally is to get back on it’s feet there must be some good price action confirmed by strong volume. If not we are likely to see lower prices ahead. I will be away for a few days, the updates will resume on Wednesday. Jerry