Leaders Index 10-17-17

The market had a pretty quiet session today. After trading in a fairly tight range the major averages finished little changed. The New York averages were a little stronger with the SPX ahead by .07%. The COMPQ closed lower by .01%. All the major averages closed either at their intraday trading highs or in the upper half of their trading ranges, a good sign. Volume was very close to yesterday’s level on both exchanges so the final results could differ for different data feeds. It was also well below average on both exchanges. Leading stocks had a harder time than the overall market. The leaders index was lower by 1.22%. It closed below the midpoint of its trading range, but held its short term 9dma. The index has been rising nicely for the last couple of weeks so a decline today is not that big a deal. The fact that the index held its short term moving average is also encouraging. It would be good for it to remain above this support level. The volume on the leaders index has been low while it rose to new highs. In fact the index has not had above average volume in over two weeks. Today’s decline on higher and above average volume is something that must be watched. Some up days on higher volume would be nice. Overall the picture looks positive. The major averages and the leaders index are rising above their short term moving averages in a constructive manner. The market is working its way higher with moderate gains on a daily basis. For now that looks like it can continue. We are in the heart of earnings season and that will have a big effect on the direction of the market over the next couple of weeks, but it looks like we should see higher prices in at least the short term. Jerry