Leaders Index 1-9-17

The market had a mixed session today. The Nasd averages were higher while the New York averages were lower. The COMPQ and the NDX were higher by .19% and .36% while the SPX declined .35%. The Nasd averages closed at new highs and near the top of their intraday trading ranges while the New York averages finished near their lows. Volume was about average and higher on both exchanges. IBD showed the volume on the New York as lower, but Esignal shows it clearly higher. This should produce a new distribution day on the SPX. Leading stocks were mixed also, but generally higher. The leaders index rose 1.89% on higher and about average volume. Much of the gain was due to a 13.82% gain in CYBE on very heavy volume. The index closed in about the middle of its trading range and is above all its short term moving averages. The relative strength line of the index also had a nice bounce off its 50dma. There is a bit of a divergence going on. The Nasd averages are clearly leading as tech stocks, and particularly the big cap techs, drive them higher. This is confirmed by positive action in the semiconductor stocks. The small and mid-cap stocks fell today with the RUT and the MID lower by .72% and .70% respectively. The charts of the small and mid-caps show them remaining in a consolidation pattern, with the New York charts looking pretty much the same. In order to really increase confidence that the market will continue to move high these averages should join the Nasd averages in new high ground. If the Nasd averages break back into their recent consolidations the chances of further gains will lessen. Jerry