Leaders Index 3-15-18

The market put in what pretty much has to be considered a disappointing session. After showing a little early strength the major averages saw their highs a couple of hours into trading and sold off from there. The New York averages held up best with the SPX off by .08%. The DOW was higher but it is getting whipped around by large export related stocks and is even more meaningless than it usually is. The COMPQ fell .20%, slightly more than the .14% the NDX declined. All the major averages closed near the lows of their intraday trading ranges, a sign of weakness. Volume was lower across the board, so there was no new distribution today. Leading stocks were lower as well with the leaders index lower by .43% on the day. The index finished high in its trading range, a positive sign. The index continues to consolidate above its 9dma, positive action. Volume was lower and well below average, which is what you want to see when the index is consolidating. Overall is was a session that failed to improve the picture. There has been no follow through after the strong advance last Friday after the positive employment report. There continued to be a pattern of stronger opens and weaker closes. This is not the signature of a strong market. The SPX is still right on its 50dma and has not broken below it, but any further selling from here will do it. The action of leading stocks continues to be the most positive factor right now. The leaders index has spent the last four days consolidating a recent advance in a constructive manner. It remains above its short term 9dma and is allowing other important moving averages to catch up. It could probably go either way right now, but I would be careful with new positions. Jerry