Leaders Index 4-3-18

The market put in a volatile session today, but finished strong. The major averages opened higher after yesterday’s decline and traded higher and lower until some late buying saw them close at their intraday trading highs. The COMPQ was higher by 1.04% and the SPX gained 1.26%. Those gains were significantly lower than yesterday’s losses. Volume was again a problem for the market. It was lower on the Nasd and very close on the New York, but Esignal has it a bit lower. This continues the pattern of higher volume on the declines than on the rallies. Leading stocks were higher as well with the leaders index gaining 1.03% on the day. This is less than the overall market, not what you want to see. The index closed just above the midpoint of its trading range and is sitting right on its 50dma. Volume was lower than yesterday and below average. The market continues to be extremely volatile with large moves in both directions. The gains today were nice on a price basis, but they were much less than the losses yesterday. Volume again produced a problem as the pattern of higher volume on declines and lower volume on rebounds. This is not healthy. The SPX regained its 200dma by a small amount and it will be important to see if it can hold this now support level or if it loses it again. The leaders index is sitting right on its 50dma. If it can rally off it with conviction the picture will improve. It is a very difficult market right now with large moves in both directions. Unless you are a very nimble trader with a very short time frame the odds are against making meaningful progress. I have always said that when the going gets tough the tough go to the beach. That is the best place to be right now. Jerry