Leaders Index 1-14-20

The market was acting well again today, but then got hit by a questionable news headline. The major averages opened a bit lower and then started a nice rally. There were moderate gains when a story about tariffs not coming off China until after the election. It was later denied, but the major averages lost their gains and finished mixed to slightly lower. The Nasd averages were the weakest with the COMPQ and the NDX losing .24% and .40% respectively. The SPX declined .15%. All the major averages closed in the lower half of their trading ranges. Volume was higher by 5.27% on the New York. There was no distribution there because the decline in the SPX was too small. Volume was higher by only .26% on the Nasd. That combined with the price decline was enough to produce a distribution day on the Nasd averages. It was however a weak distribution day due to the small volume increase and the small price decline. Leading stocks were mildly lower as well with the leaders index falling .89% on the day. It closed in the lower half of its trading range and volume was higher and about average. The action today was news driven and really didn’t change much. The major averages were acting well until the headline came out about the tariffs on China. The news was later denied by the White House, so it likely won’t have much longer term effect. Small and midcap stocks did well today along with semiconductor stocks. The leaders index is still acting well as it only tagged its 9dma and closed above it. Nothing I saw today changes the view that the rally is intact. Were it not for the story there probably would have been gains today. I think the market will shrug this off and move higher in at least the near term. Jerry