Leaders Index 8-4-16

After trading in a fairly tight range today the market ended the session little changed. The major averages, other than the DOW, finished the day with small gains. The COMPQ was higher by .13% and the SPX gained .02%. Most of the strength was again in the Nasd averages as they closed high in their intraday trading ranges while the New York averages closed in about the middle of their trading ranges. Volume was lower across the board and about average on the Nasd and below average on the New York. Leading stocks were slightly higher, mirroring the overall market. The leaders index was higher by .05% and closed in the upper half of it’s intraday range. The index continues to trade below what is now a confluence of the 9dma and the 17dma. We are starting to see a slight downtrend in the index as it struggles with this important resistance. The Nasd averages continue to have the best charts with the averages still rising above their short term 10dma’s. The New York averages are still in their recent consolidation patterns and are lagging at the moment. The thing to really watch now is the leaders index. It must break above it’s short term moving averages with some conviction and resume it’s uptrend. Right now quality growth stocks are underperforming the overall market, the opposite of what you want to see. The rally is still intact, but there are a few small cracks now visible. Jerry