Leaders Index 1-28-14

[Jerry Samet]

The market rebounded today as we got our first bounce after the recent sell off. The New York averages lead the way with the SPY gaining .61% and the NYA up .86%. The COMPQ was the laggard, rising .35%, which wasn’t that bad considering the loss in AAPL. All the major averages closed at their intraday highs. The New York averages remain below their 50 dma’s while the COMPQ is back above it’s 50 day. Volume was the problem here. It was down across the board, which is not what you want to see on the initial rebound from a high volume decline. Leading stocks had a good day also as the leaders index rose 4.01% and again held it’s 50 dma. It also closed near it’s intraday high. The problem again was volume. It was well below yesterday’s level and was also below average. The recent high volume days have mostly been down sessions. When you have declines on high volume and rebounds on lower volume it shows that large players have a negative view of the market. The futures, as of this writing, are higher. The next few days should tell us weather this is just a dead cat bounce or we will see another turn around and go to new highs as we have so many times in the last year. How the major averages react around their 50dma’s will be critical. If the New York averages can regain this critical moving average and the COMPQ can hold it this will be positive. If not lower prices are likely ahead. Jerry