Leaders Index 1-20-17

The market opened strong yesterday and closed in positive territory. The major averages set their intraday trading highs in the first fifteen minutes of trading and spent the rest of the session working their way lower. The New York averages led yesterday with the SPX gaining .34% while the COMPQ rallied .28%. The greatest gains were again in the semiconductor stocks with the SOX gaining 1.30% on the day. The New York averages finished in about the middle of their trading ranges while the Nasd averages closed low in their trading ranges. Volume was mixed, higher on the New York and lower on the Nasd. IBD called a stalling day on the COMPQ. Leading stocks were higher as well with the leaders index gaining .84% on the day. The index made a new intraday high but couldn’t hold it. The index closed in the consolidation range it has been trading in since the middle of December. It closed in the lower half of its trading range and volume was higher and above average. This is stalling action on the index. The market continues to struggle a bit as it tries to consolidate the gains since the election. Two short term indicators I look at, the As minus Es and the Summation Index have both turned down. The market and leading stocks must resume the rally pretty quickly or the odds of a breakdown will increase. Jerry