Leaders Index 5-3-17

The market was modestly lower today as it continues to consolidate recent gains in a fairly constructive manner. The major averages traded mostly in negative territory and closed with small losses. The COMPQ fell .37% as the Nasd averages were weakest and the SPX was lower by .13%. All the major averages finished trading at the top of their intraday trading ranges. Volume was higher and above average on the Nasd and this, combined with the loss of .37% in the COMPQ produced a new distribution day on the Nasd averages. The volume on the New York was very close but very slightly lower on esignal. The decline in the SPX was too small in any case to produce distribution on the New York averages. Leading stocks were pretty flat as well as the leaders index was higher by .17%. The index closed in the upper half of its trading range and even though it tagged its short term 9dma it managed to close above it. Volume on the index was higher than yesterday and above average. The market continues to look ok as recent gains are being consolidated. The leaders index and the SPX continue in their tight patterns and the pullback in the Nasd averages remains pretty orderly. The As minus Es turned down today but it was a small decline and would need confirmation before it became more worrisome. The rally appears to be intact, but again the direction of the break from the tight patterns in the SPX and the leaders index will likely tell us the direction in the near future. Jerry