Leaders Index 1-21-16

The market opened a bit higher in reaction to positive news from the ECB and higher oil prices. The major averages built on yesterday’s reversal and showed strong gains in the first couple of hours of trading. It didn’t last however. Selling later in the day took the major averages off their highs and the COMPQ even got into negative territory before some late strength pushed them off their lows. The action was still pretty unconvincing. The COMPQ finished flat with a gain of .01% while the SPX climbed .52%. The COMPQ closed in the lower half of it’s intraday trading range and the SPX finished in about the middle. Volume was lower across the board, but was still above average. This showed that buying pressure today was not as strong as selling pressure was yesterday among large institutional players. Leading stocks generally lagged today with the leaders index falling .48% on lower but above average volume. The index tagged it’s 9dma at the intraday highs but closed well below it. I said yesterday that the kind of intraday reversal we saw yesterday can lead to a relief rally, but today’s action was less than inspiring. We will have to see if the market can work it’s way higher, bit I don’t think it will really amount to much. Jerry