Leaders Index 1-27-17

We had another consolidation session yesterday. The major averages opened little changed and were mostly flat the rest of the day. The COMPQ finished with a gain of .10% while the SPX fell .09%. The greatest strength again was again in the semiconductor stocks with the SOX rallying 1.26% and making another new high. Small and mid-cap stocks were weaker with the RUT and MID declining .36% and .49% respectively. The Nasd averages closed at the top of their intraday trading ranges while the New York averages finished low in their trading ranges. This continues the recent pattern of Nasd leadership. Volume was lower across the board and below average on both exchanges. This shows that large institutional players were not heavy sellers yesterday. Leading stocks pretty much mirrored the overall market with the leaders index trading flat with a gain of just .08%. The index closed in the upper half of its trading range . For the last three trading sessions the index has been flat while it is consolidating its recent gains. The volume on the leaders index was lower and below average. This continues the pattern of the index consolidating on low volume, which is what you want to see. The market is acting pretty well right now. The last few days action has been positive as the market is consolidating its recent gains in a very constructive manner. Lower volume on the sideways action than we saw on the rally means that market participants are buying as prices rise and holding on as they consolidate. After an advance both stocks and the major averages can get ahead of their short term moving averages and must then wait for them to catch up. The market is acting well right now and the direction in at least the short term looks to be higher. Jerry