Leaders Index 3-7-19

The market took another shot today. After opening lower the major averages spent the rest of the session working their way down. All the major averages closed at or very near their intraday trading lows, a bad sign. The Nasd averages led the way down with the COMPQ and the NDX losing 1.13% and 1.20% respectively. The SPX lost .81%. Volume was higher across the board, producing another distribution day on all the major averages. Leading stocks were lower as well with the leaders index falling .52% on the day. The index broke below it’s important 17dma support level and closed low in its trading range. Volume was higher and above average, showing heavy selling in quality growth stocks. The picture darkened much more today. All the major averages broke below their important 200dma support levels. This means they are now back below the moving average they just recently overcame. There was also more distribution today, showing that large institutional players were selling stocks. There has been a lot of distribution in the last few days and it qualifies as a distribution cluster. There is some pretty strong evidence now that the rally, if it isn’t over, is in serious trouble. A high cash position right now is a good idea. Jerry