Leaders Index 7-23-18

The market put in an overall mildly positive session today. After opening a little higher the major averages worked their way higher for the rest of the session. All the major averages closed at their intraday trading highs, a sign of support. The Nasd averages were a little stronger with the COMPQ and the NDX higher by .28% and .29% respectively while the SPX rallied .18%. Volume was lower across the board, not exactly what you want to see when the major averages move higher. Leading stocks had a generally positive session as well with the leaders index gaining .43% on the day. The index finished in the upper half of its trading range and slightly above the short term 9dma support level. Volume was higher on the day, a good sign when prices are rising. The action was somewhat positive today with the major averages posting small gains and finishing strong. It looks like the market is consolidating right now. The charts of the Nasd averages and the leaders index look pretty good at this point. The Nasd averages have been going sideways for about a week and the leaders index has been consolidating for several weeks. The SPX has been trending slightly higher lately but is well below new high ground. I mentioned last week that a couple of the shorter term indicators I look at have turned over and that there could be a bit of near term weakness and I think we are seeing that. There has also been some negative action in recent breakouts that are not acting well. It looks like the overall trend is still up, but some caution in taking new positions looks like a good idea. Jerry