Leaders Index 4-21-17

After the solid gain on Thursday the market held its own fairly well yesterday. The major averages were lower all day, but the losses were pretty small compared to Thursday’s gains. The Nasd averages again did best with the COMPQ declining .11% while the SPX lost .30%. The semiconductor stocks were weakest with the SOX falling .46%, but the index held its 50dma that it overcame on Thursday. The Nasd averages closed high in their intraday trading ranges while the New York averages finished low in their trading ranges, showing greater strength in the Nasd averages. Volume on the Nasd was lower and below average. IBD says volume on the New York was lower as well, but signal showed it clearly higher and above average. On esignal data it would be a distribution day on the New york averages, but IBD didn’t call it. This happens when volume is very close to the previous day’s level, but it was not close on esignal. Leading stocks were lower as well with the leaders index falling .78% on slightly lower volume. The index closed high in its trading range and is holding its short term moving averages. The chart of the index shows a nice bounce off its 50dma, but now we will have to see if the index can reassert the rally and move into new high ground. The fact that the market held most of Thursday’s gains is positive, but more positive action is required to improve the picture. The Nasd averages look like they are in a basing pattern and need to break into new high ground with some volume to confirm the rally is intact. The New York averages look a lot worse as they are having a lot of trouble staying above their 50dma’s. The market is clearly struggling and if it can’t start rallying again soon it will likely head lower. Jerry