Leaders Index 8-23-16

The market was higher today and with a higher open it tried to breakout above the recent consolidation it has been in. There were solid gains early, but the major averages put in their intraday trading highs in the first half hour of trading. They worked their way lower the rest of the session and all closed very near their intraday trading lows. The COMPQ gained .30% and made a new intraday high before losing much of the gains. The SPX was higher by .20% and also failed to get into new high ground. Volume was mixed, higher on the New York and lower on the Nasd. Both were below average. Leading stocks outperformed the overall market with the leaders index having a solid gain of 1.35%. The index closed in about the middle of it’s trading range and is above all it’s short term moving averages. Volume was well above yesterday’s level, which is positive when coupled with the price gain. The index is right at it’s old highs on both a price and a relative strength basis. Another good rally day could put it into new high ground. Both the major averages and the leaders index made a good run at breaking above their current consolidation levels. Both lost ground as the day went on and fell short of this goal. We need a real break into new high ground with conviction to significantly improve the picture. For now the trading range continues. Jerry