Leaders Index 3-22-17

The market made something of a weak bounce back after yesterday’s losses. After opening a little weaker the major averages bottomed out a little more than an hour into trading and stages a mild rally into the close. The Nasd averages were stronger with the COMPQ gaining .48% and the NDX higher by .66%. New York averages lagged as the SPX was higher by only .19%. All the major averages closed at or near their intraday trading highs, a good sign, but the gains were only a fraction of yesterday’s losses. Volume was lower and below average on both exchanges, not what you want to see on a rebound after a big sell off. Leading stocks were higher as well with the leaders index gaining .90% and closing in the upper half of its intraday trading range. The index tagged its important 17dma at its highs but could not hold those gains and finished below this now resistance level. Volume was lower than yesterday and about average. The index regained less than a third of the previous decline. After a sell off the quality of the bounce following it is important. Today’s bounce was pretty weak. The major averages and the leaders index regained only about one half to one third of yesterday’s decline. It also did it on much lower volume. This shows that there was a lot more selling pressure yesterday than there was buying pressure today. A lot of the problem now is concern that the health care bill will not pass the House tomorrow night. If it does there could be a more impressive bounce. If not the market may go lower as it will raise concerns about the future of other policies, like tax reform. Tomorrow will likely be another indecisive session as we await the vote tomorrow night. Jerry