Leaders Index 7-3

The market had a generally up session in yesterday’s holiday shortened trading. All the major averages had solid gains and although they lost a good portion of those gains near the close they still had decent gains, except for the NYA which had a small loss. The major averages closed in the upper half of their trading ranges and volume was very low, as would be expected in a half session. Leading stocks performed about in line with the overall market as the leaders index rose .35% on low volume. The index continues to struggle with it’s 50dma and has been unable to regain this important moving average. If it can’t do this it will likely point to lower prices ahead. The COMPQ is leading the major averages and is the only one that has been able to get above it’s 50dma. All the major averages have clear cut declining tops lines in their charts. The COMPQ is the one to watch most closely. If it can break above it’s declining tops lines it will signal higher prices ahead. If it falls back under it’s 50dma the correction will likely continue. The other two major averages, the SPY and NYA have not been able to regain their 50dma’s. It would be a good sign if they could get above this important level. I hope everyone has a good Fourth of July. Jerry