Leaders Index 5-29-15

The market had another weak session yesterday. After opening lower the major averages sold off the rest of the day. The major averages finished at the bottom of their intraday trading ranges, a sign of weakness. The COMPQ fell .55% while the SPX declined .63%. The real weakness continues to be in the transports, which made new lows yesterday, and the strength is in the semiconductors. Volume rose considerably across the board and was well above average. This shows that large institutional players were selling stocks with some conviction yesterday. Leading stocks had a mixed picture. More were down than up. Only fifteen stocks in the IBD 50 were higher on the day and that index declined .5% on the day. The leaders index did better with a gain of .38%. Volume was lower and slightly above average, although it has been declining for the last few days. The index set new highs on both a price and a relative strength basis, although the red candle shows that the index closed below it’s opening price. The leaders index has been consolidating for about a week and a half now, and along with the major averages has not been producing much recently. The fact that quality growth stocks are outperforming the overall market, even if it is by a small amount, is positive. I don’t know when we will break out of the trading ranges we are in now or in which direction it will be, but it is tough to make any real progress right now. Jerry