Leaders Index 4-25-18

The market tried to rally today after yesterday’s decline, but it was generally unsuccessful. After some early weakness the major averages rallied and sold off sporadically before closing with some strength. The action today was mixed with the SPX higher by .18% and the COMPQ lower by .05%. All the major averages finished high in their intraday trading range, a sign of some support. Volume was lower across the board, not what you want to see when the market is trying to recover after a strong decline. Leading stocks were lower as well with the leaders index declining 1.48%, but closing in the upper half of its trading range. Volume on the index was lower and below average, mirroring the overall market. The market made a couple of rally attempts today after the big decline yesterday, but was unable to make much progress. The major averages were pretty much flat today on lower volume. This pattern of high volume declines and feeble rally attempts on lower volume is one of distribution. The leaders index traded the entire session below its important 17dma and closed just below it. There was a well-received earnings report from FB after the close today and the futures are higher. If the market opens higher tomorrow and can’t hold the gains it will be very negative. The market is clearly struggling now and there is a high probability that the recent follow through will fail. Jerry