Leaders Index 10-13-21

The market put in an overall positive session today. The major averages opened slightly higher and after some early losses they found a bottom and rallied for most of the remainder of the session. All the major averages finished near their intraday trading highs, a break from recent action. The Nasd averages were the strongest with the COMPQ and the NDX gaining .73% and .77% respectively. The SPX rallied .30%. Volume cooperated today as it was higher across the board. It gained 12.00% on the New York and 1.05% on the Nasd. Leading stocks again outperformed the overall market with the leaders index gaining 2.60% on the day. The index closed high in its trading range on higher volume. The index tagged its declining 17dma but was unable to overcome it. The relative strength line of the leaders index is also clearly improving. The market broke the recent pattern of weak closes today, which is positive. The gains in the major averages were solid but not at he level that would trigger a follow through. These gains aren’t enough to really change the overall picture, but it is better than the recent pattern of weak closes. The action of leading stocks is also somewhat encouraging. Quality growth stocks have been acting better than the major averages, and that is good. The overall picture is still negative and the market has a ways to go in order to prove itself, but there are at least a couple of bright spots. Jerry