Leaders Index 3-7-17

The market had another moderately negative session today. After opening lower the major averages worked their way down the rest of the day. The COMPQ finished lower by .26% while the SPX fell .29%. All the major averages, and most secondary averages, closed at or near the bottom of their intraday trading ranges, a sign that there was little buying interest as prices fell. Volume was mixed, lower on the New York and slightly higher on the Nasd. This was enough to produce a new distribution day on the Nasd averages. Leading stocks were lower as well with the leaders index falling .74% on higher but still below average volume. Most of the decline was due to two components of the index, THO and WLDN falling 9.89% and 8.81% respectively. The index closed in the lower half of its trading range and the decline was enough to produce distribution in quality growth stocks. The market is at least resting a bit after its recent advance. The charts of both the major averages and the leaders index still look good, although the major averages are below their short term 10dma’s. There are signs of distribution in stocks as the A’s minus E’s turned down on 2/28. In addition the weekly Coppock, which gave a buy signal in late November has almost flattened out this week. If it turns down and gives a sell signal it will be very negative. Right now the evidence is not looking like anything more than a pause in the rally. Continued weakness, particularly with additional distribution, might change that. Jerry