Leaders Index 8-16-17

The market opened higher and posted solid gains in the first half of the session. At that point a sell off began after news from Washington was taken badly by the market. All the major averages finished in positive territory, but most of the early gains were lost and they closed near their intraday trading lows. The COMPQ closed with a gain of .19% while the SPX was higher by .14%. Volume was higher across the board, which is what I have wanted to see, but the early price gains were not held. This produced a new stalling distribution day on all the major averages. Leading stocks continue to act better than the overall market. The leaders index was higher by 1.64% on the session and the index closed in about the middle of its trading range. This was a new high on both a closing and an intraday basis, a positive sign, especially since volume was higher on the day. The relative strength line of the index also made a new high. There are a lot of mixed signals in the current market environment. The major averages are struggling as they try to rally into new high ground. The distribution count on the Nasd averages is at a pretty high level. We are also seeing that for the first time news from Washington is beginning to have a negative effect on the market. On the other hand leading stocks are acting pretty well as can be seen in the leaders index. Frankly I think it could go either way right now, so we really need to see the major averages break into new high ground with some conviction behind them in order to improve the picture. Jerry