Leaders Index 8-29-14

The market closed the week on a strong note with all the major averages rising. The COMPQ led the way with a solid gain of .50% while the SPY was higher by .33%. There was a decline during the day on news from the middle east but the market recovered and all the major averages finished at their intraday highs, a positive sign. Volume was higher across the board, unusual on a Friday before the Labor Day weekend, but it was still well below average. Leading stocks were mostly higher on the day but there was some mixed action. The leaders index was down slightly on the day, falling .21% on higher but still well below average volume. This decline was caused by three components of the index, CMCM,JMEI, and VIPS that all fell hard on heavy volume. Several other components of the index set new all time highs. The index itself remains in good shape and remains above even it’s short term 9dma. This is a sign of strength. The major averages are also looking good as all are at or near all time or multi year highs. They all are also above all their short term moving averages. There are two stocks that have had recent and good looking breakouts, ANET and GPRO. How these stocks perform will tell us a lot about the prospects for the rally. For now the major averages and the leaders index are acting well and the distribution count is low. Barring a major news event we will likely see higher prices in at least the short term. Jerry