Jerry Samet
06-13-2015, 12:12 PM
The market got hit again yesterday, mostly it seemed on more uncertainty about the Greece bailout. The major averages opened lower and declined for the rest of the session and closed at their intraday lows. The COMPQ was off by .62% while the SPX declined .70%. The SPX had regained it’s important 50dma on Wednesday but lost it again yesterday. Volume was lower across the board so large institutional players were not heavy sellers of stocks. That is about the only good thing you can saw about yesterday’s action. Leading stocks again did better than the overall market. The leaders index rose .78% on the day and closed high in it’s trading range. The index made new highs on both a closing and an intraday basis and the relative strength line made a new high as well. The index continues to climb above it’s short term 9dma. Volume was lower and below average. You would prefer to see higher volume as the leaders index makes new highs. It remains a difficult market, but the fact that quality growth stocks are outperforming the overall market is a positive sign. We will likely not see a big decline until there is more weakness in these stocks. Jerry