Leaders Index 12-27-16

The market opened strong today ,but all of the gains came in the first half hour. After that the major averages worked their way lower for the rest of the session. The COMPQ finished with a gain of .45% while the SPX rallied .22%. All the major averages closed in the lower half of their intraday trading ranges, not what you want to see. Volume was mixed on the day, higher on the Nasd and lower on the New York. Both were well below average. The greatest strength was again in the semiconductor stocks with the SOX up by 1.22% today and moving into new high ground. Leading stocks had a better session than the overall market with the leaders index rallying 1.30% on the day and closing near its intraday high. The index broke above the consolidation pattern it has been in for almost a month. It set both a new closing high and an intraday high and opened up some distance with its shirt term moving averages. Volume was much higher and well above average, a sign that large institutional players were buying quality growth stocks. It was overall a solid session. The Nasd averages followed the leaders index into new high ground and closed with modest gains. Volume was light overall, as you would expect in the week between Christmas and New Year. The fact that the major averages gave up much of their early gains is something to keep an eye on, but trading can be distorted in the thin volume you see this time of year. We look to be on solid ground right now, but we will likely have to wait until after the new year to get a better feel for where the market is going. Jerry