Leaders Index 7-13

The market opened to the upside and then took off into a strong rally on news that the Fed was strongly leaning toward QE3. We got a strong rally after the announcement until about 9:00(PDT) and then spent the rest of the day selling off. The major averages closed near the lows of the day in what would have to be considered a negative reversal. Volume was lower across the board. The leaders acted in a similar fashion, having a good early advance and closing near the lows of the day. Volume for the leaders increased. Metals and commodities increased and the dollar sold off on the prospect of more printing of money by the Fed. Since the market couldn't hold the nice gain it had early on this has to be considered a negative day. The 50dma remains an important line in the sand and we have to see if it can hold. Jerry