Leaders Index 1-14-19

The market took a break today. The major averages opened lower but put in their lows early and did some rallying from there. The Nasd averages were the weakest with the COMPQ and the NDX losing .94% and .91% respectively and closing in the lower half of their intraday trading ranges. The SPX was off by .53% and finished in the upper half of its trading range. Volume was lower across the board so there was no distribution on the day. Leading stocks were lower as well with the leaders index falling 1.01% and closing just below the midpoint of its trading range. Volume was slightly higher so there was distribution in the leaders index. The market is still holding up well as some corrective action is to be expected after the recent advance. The fact that volume was lower across the board is positive as it showed that large institutional players were not selling the stocks they recently bought. The market is acting well so far after the follow through of the trading session after Christmas. Today was the first down day that didn’t close high in the trading ranges and the lighter volume on the decline was also encouraging. There are still only a small number of attractive stocks out there so opportunities are scarce. ETF’s are a good way to go. The fact that there was lower volume today is positive, but the 50dma’s of the major averages are still looming less than 2% of current prices. If the market is to move much higher it will have to overcome this resistance. Jerry