Leaders Index 5-21

The market had another decent gain today although the major averages closed off their highs of the day. The gains on the major averages ranged from .11% on the NYA to .17% on the SPY. They all touched new intraday highs and volume was higher across the board. This showed some institutional support for the day’s action. Leading stocks under performed the overall market with the leaders index declining .76% on the session. Volume declined considerably and was well below average, showing little selling pressure. The index is taking a rest after it’s recent advance and is sitting on it’s 9dma. The RS line has lost ground in the last few days. I have been looking at the Hi Jump on the COMPQ for indications of how far this rally could go. It has reached about the same level that the index topped out at in 2007, but not nearly as high as the indicator got in 2009 and 2011, when it reached levels of 23 to 24 and about 17 before a correction set in. The fact that the Hi Jump looks like it has some more room to run and that there are now no distribution days on any of the major averages would seem to say that the current rally could have some more room to go higher. Jerry