Leaders Index 3-27-17

The market gapped lower at the open today following weakness in Asia and Europe. The failure of the health care reform bill was also a cause. The selloff didn’t last long as the major averages bottomed out in the first fifteen minutes and then reversed higher. The closing prices were mixed as the Nasd averages managed to close higher while the New York averages finished with small losses. The COMPQ was up by .20% while the SPX declined .10%. All the major averages closed at their intraday trading highs, a sign of support. Volume was mixed on the session. It was higher on the New York and lower on the Nasd. Both were below average. Leading stocks again outperformed the overall market as the leaders index rallied .74% on lower and well below average volume. The index closed near the top of its trading range and finished above its short term 9dma and 17dma. The relative strength line of the index made a new high ,showing that quality growth stocks are acting better than the major averages. The reversal we saw today was a positive development. It shows that there were buyers under the market today after the early decline. The New York averages traded below their 50dma’s during trading but regained this important support level. The fact that leading stocks are doing better is also positive and the move of the relative strength line into new high ground is good. There are plenty of negatives to, such as the weekly Coppock. If the major averages close the week where they are now there will be a sell signal. The market could go either way at this point so we will have to let it tell us which way it will go. Jerry