Leaders Index 11-14-16

The rotation that began after the election last week continued today. Tech stocks continued to get hit as the leaders of the recent rally lost more ground. The financials, infrastructure and building related stocks rallied further. The major averages were mixed on the day, but overall have held up well. The COMPQ was weakest with a decline of .36% while the SPX was essentially flat with a decline of only .01%. The real strength today was in the midcap stocks closely followed by the small caps. The MID rallied 1.61% while the RUT gained 1.26%. The New York averages finished high in their intraday trading ranges while the Nasd averages closed low in their ranges. Volume was higher across the board, producing a new distribution day on the Nasd averages. Leading stocks were split pretty much along the same lines as the market itself. The leaders index declined today as there was more weakness in the declining stocks. The index declined 1.34% on lower but still very high volume. It closed in the lower half of its trading range. Despite the decline today the chart of the index looks fine. It is clearly in a defined uptrend. The market is tough right now. The Smaller stocks along with New York stocks are leading. The tech stocks are getting hit pretty hard. The SPX is close to breaking into new high ground while the RUT is well into new highs. The Nasd averages are still fighting with their 50dma’s and must overcome this resistance or fall further behind. The old leadership is dead. New leadership has shown itself, but the critical question now is if they are a flash in the pan or can they sustain a real tradable rally. That is the question. We don’t know the answer yet. Jerry