Leaders Index 7-15

The market had its first generally positive day all week yesterday as the major averages were mixed early and then rallied into the close to finish at the highs of the day. This is a reversal of the action earlier in the week. Volume was mixed, higher on the NYSE and lower on the Nasd. The leaders did a little better than the major averages, rising 1.33% on very low volume. We are in a bit of a state of limbo here as the markets try to decide which way to go. Either the major averages will rally with conviction and break above the late May highs and invalidate the head and shoulders pattern or it will sell off and break below the 50dma that has been providing support and begin a serious decline. Time will tell. Jerry