Leaders Index 6-23-14

The market spent the day consolidating recent gains. The major averages were about as flat as you can get with the COMPQ up by .01% while the SPY was lower by .01%. They traded in a very tight range and again closed at their intraday highs. This continued the recent pattern of the major averages finishing at their highs, a sign of support from institutional investors. Leading stocks were a bit mixed today but generally continued their encouraging action. I replaced two components of the index that were pretty much crushed yesterday. AMKR and EMES were replaced by SHPG and KS. Even though I usually don’t change the stocks in the index I think it is important to have warning of a topping market, which the index will now do a better job of. There are still a few components of the index that have broken down. The index now shows a new high on Friday on both a price and a relative strength basis. Today the index was a bit lower with a .45% decline on the session. The index still closed in the upper half of it’s trading range and above it’s 9dma. Overall the market seems to be in a constructive pattern after it’s recent gains and there are few signs that the rally is faltering. Jerry