Leaders Index 4-29-14

[Jerry Samet]

The market continued to rebound today as the major averages were positive all day. They held their gains and all the major averages closed near their intraday highs. Volume was the problem again as it was lower across the board. This continues the pattern of rally day’s being mostly on lower volume. Large players were not heavy buyers on the session. Leading stocks were up also with the leaders index higher by .86% and closing just above the mid point of it’s trading range. Volume was also the problem as it was well below yesterday’s level and below average. Most of the above average volume days in the leaders index in the last couple of weeks have been on down days. The index remains well below it’s critical 50dma and the 17dma is about to break below this moving average. Today’s action does not really make the chart of the leaders index look any better. It must break above the 50dma quickly to improve the picture. While many of the quality growth stocks had good day’s today it was mostly gains from low levels. Few are in position to have buyable breakouts. It will take more positive action than we saw today to improve the picture and for now the side lines are still the safest place to be. Jerry