Leaders Index 8-10-16

The market traded lower the entire session. After opening down the major averages worked their way lower pretty much of the day and finished very near their lows of the day. The COMPQ fell .40% while the SPX declined .29%. The semiconductors and small caps were the weakest with the SOX losing .77% while the RUT fell .69%. Volume was very close to yesterday’s level, so close that different data feeds could have different results. IBD said that volume was lower across the board so there was no distribution. Esignal had Nasd volume slightly lower but New York volume slightly higher. That would produce a distribution day on the New York averages. When volume is this close you just take your pick. Leading stocks were pretty flat today as the leaders index was down by only .05%. The index closed high in it’s intraday trading range and is still above the short term 9dma and 17dma. The relative strength line of the index continues to improve. The chart of the index is starting to take on the look of a shallow saucer formation and if it can complete this pattern and move into new high ground it would be positive. The Nasd averages are acting well and are rising above their short term moving averages. The SPX is pulling back a bit and is coming down to the top of the recent consolidation . If it holds this support and moves higher then the rally will likely continue. Jerry