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View Full Version : Leaders Index 1-13-16



Jerry Samet
01-13-2016, 11:05 PM
It was another ugly session today. The market opened a little higher on some strength in Europe, but peaked in the first fifteen minutes and it was all downhill from there. Constant selling drove the major averages in almost a straight and and saw them finish at their intraday lows. The losses were big with the COMPQ leading the way down with a loss of 3.41% while the SPX declined 2.50%. There was continued weakness in the small and mid cap stocks and the SOX extended it’s decline by falling 3.14%. Volume was higher across the board, showing that large institutional players were selling stocks heavily, producing more distribution. Leading stocks were hit hard as well with the leaders index falling 4.0% and closing near it’s intraday low. The index traded further below it’s 50dma and has traded completely below it for three days now. This important moving average is now major resistance for the index. Selling was wide spread and only one stock in the IBD 50 was up on the day. Volume on the index rose and was well above average. The damage is really getting serious now. The RUT, representing the small cap stocks is now more than 20% off it’s highs, joining the Transports at this level of decline. Also the NYA, the broadest measure of New York stocks has now broken decisively below it’s August lows. The COMPQ and the SPX are probably not far behind. If this isn’t a bear market it is doing a pretty good imitation of one. Jerry