Leaders Index 8-21-17

After struggling most of the session the market ended up closing little changed. The New York averages were a bit stronger and closed with very small gains. The Nasd averages lagged. The COMPQ was lower by .05% while the SPX gained .12%. Late strength allowed all the major averages to finish trading high in their intraday trading ranges. Volume was lower across the board and well below average. Leading stocks pretty much mirrored the overall market with the leaders index lower by only .07%. The index closed high in its trading range and held above its short term 9 dma support. It look like it is consolidating right now as the overall market is showing weakness. Volume on the leaders index was lower and well below average. The market appears to be under stress right now. The major averages are showing little ability to rally and are all below their 50dma’s. Many important secondary averages are below their 200dma’s, a negative sign. The fact that the market can’t stage any kind of meaningful rally is worrisome. About the only positive thing right now is the action of quality growth stocks as shown in the outperformance of the leaders index. This however will likely not last if the market continues weak. Right now it looks like the odds favor lower prices in at least the short term. Jerry