Leaders Index 1-16-24

The market was lower pretty much all day today, but the declines were not too large. The major averages opened lower and traded in negative territory all day. In a show of some strength the major averages finished in the upper half of their intraday trading ranges. The COMPQ and the NDX were lower by .19% and .01% respectively. The SPX lost .37%. Volume was higher across the board. There was an easy comparison as Friday was the last day before a three day weekend. Despite this it still counts as a new distribution day on the New York averages. Leading stocks held up well with the leaders index about flat. The index declined .05% on heavier and above average volume. The market seems to be struggling a bit as it is trying to move higher. Market internals are showing some weakness and the distribution count, particularly on the SPX, is getting pretty high. The short term indicators I look at are still headed down. The SPX is struggling at its old high and is trying to break above it. The COMPQ is having the same problem and is also dealing with the 15,000 round number. The weekly charts of these major averages show big cup and handle patterns. Right now the weight of the evidence points to higher prices before a bigger decline, but the longer it takes to break to new highs the greater the danger. Jerry