Leaders Index 4-18-17

The market opened lower and was in negative territory almost the entire day. After bouncing around the major averages closed with moderate losses. The COMPQ finished lower by .12% while the SPX declined .29%. All the major averages closed in the upper half of their intraday trading ranges as some late strength saw them rally off their lows. This is generally a good sign. Volume was higher across the board but was below average on both exchanges. This was enough to produce a fresh distribution day on the New York averages, although the losses in the Nasd averages were too small to qualify as distribution. Leading stocks did better than the overall market with the leaders index rising .17% on higher but below average volume. The index closed in the upper half of its trading range. The index tagged its 50dma again and once more held. You don’t want this to happen too often because every time it does the chances of it breaking this important support grows. The market continues to struggle. The leaders index is stuck between the 50dma support below it and the declining 9dma resistance above it. These two moving averages are converging fast so the index will break one soon. The Nasd averages are holding above their 50dma’s while the New york averages continue to trade below their 50dma’s. The fact that volume was higher today as prices fell than it was yesterday as prices rose is a negative. The market could go either way at this point and earning reports could drive it either way, but right now the rally appears to under considerable stress. Jerry