Leaders Index 3-6-17

The market gapped down at the open today after some weakness in Europe. The major averages opened lower and after bottoming out with about two hours left in the trading day. They then rallied off their lows and ended up closing high in their intraday trading ranges. The COMPQ ended the session lower by .37% while the SPX declined .33%. Volume was lower across the board ,which is what you want to see on a down day. It shows that large institutional players were not active sellers today. Leading stocks sold off as well with the leaders index falling .56% on slightly higher but still below average volume. This showed some mild distribution in quality growth stocks. The index closed high in its intraday trading range, so it to recovered much of its early losses. The major averages have now given up pretty much all the gains it made on that big rally day last Tuesday after Trump’s speech. The charts of both the major averages and the leaders index look solid. We seem to be losing a little bit of steam, particularly in the major averages, but not much real damage has been done. We may be resting a bit in order to let important moving averages catch up with prices, but the overall picture is still positive. Jerry