Leaders Index 4-6-17

The market traded with an upside bias today, but it didn’t appear to be that strong. The major averages opened slightly higher and worked their modestly higher before a bit of late selling saw them finish off their intraday highs. The COMPQ closed with a gain of .25% while the SPX was higher by .19%. All the major averages closed in the upper half of their intraday ranges, a sign of some support. Volume was lower across the board, showing there was less buying pressure in today’s rally attempt than in yesterday’s reversal. Leading stocks bounced today as well with the leaders index gaining 1.33% on lower and below average volume. The index closed high in its trading range, which is good, but it looks like a pretty weak bounce. Today’s candle is small compared to yesterday’s and the index is still below its short term 9dma and 17dma. It must break above these now resistance levels to have any chance of rallying further. After a decline or a reversal like we saw yesterday you want to look to the quality of the bounce. Today is didn’t look to strong. Jerry