Leaders Index 2-20-18

The market put in an overall negative session as a reversal cost the market early gains. The New York averages never showed much strength but also ended weak. The Nasd averages showed solid gains earlier in the session but couldn’t hold the gains. All the major averages closed at or near the bottom of their intraday trading range as they reversed lower. The COMPQ finished with a loss of .07% while the SPX lost .58%. In a saving grace volume was lower across the board and below average on both exchanges. There was consequently no distribution on any of the major averages. Leading stocks also showed early gains that were mostly wiped away by the close. The leaders index finished the session higher by .19% on lower and about average volume. It was the first day that volume on the leaders index was not above average in the last three weeks. The index closed low in its trading range as quality growth stocks reversed lower as well. We had something of a bifurcated market today. The New York averages were lower the entire session while the Nasd averages showed real strength early. The tech stocks were the leaders as the NDX was higher by over one percent during the day and closed positive with a .13% gain. The semiconductor stocks were the strongest as the SOX was up by 2.50% early and closed with a gain of 1.76%. The market is really not acting to well in the days after the follow through. There have been two days in a row of closed on the lows in the COMPQ and all the New York averages are back below their important 50 day moving averages. The Dow and the SPX both rallied back above this moving average and today again fell back below it. The NYA never got back above this now resistance level. The stall day on Friday combined with today’s action raises the caution levels considerably. The market must rally soon with some conviction or the follow through of last week will likely fail. Jerry