Jerry Samet
07-27-2013, 10:32 AM
The market sold off early yesterday in response to weakness in Asia and Europe. The major averages then started working their way higher and and closed slightly positive and at the highs of the session. It would have been good to see higher volume on this reversal, but it was lower across the board. This is not unusual on a Friday in the summer. Leading stocks did better than the overall market as the leaders index rose 1.54% on higher and about average volume. The index had a good white candle and moved up off it’s 17dma. The RS line for the index is approaching it’s old high, which shows that quality stocks are generally doing well against the major averages. The action on Friday was encouraging. What could have turned into a nasty decline for the day reversed and closed up slightly. The market is slowly working it’s way higher and the leaders index is forming a base that could propel it to new highs with further strength in the market. If we can avoid further distribution there could be more upside in this rally. Jerry