Leaders Index 1-13-15

The market had an ugly reversal today. The major averages had strong early gains and were up up between one and two percent. Within the first couple of hours they began selling off until all had significant losses. A small late rally allowed the major averages to close off their lows. The SPX finished with a loss of .26% while the COMPQ closed down .07%. Volume was higher across the board and was well above average. This produced another distribution day on the SPX but the COMPQ was not down enough to qualify. This is now two distribution days within three days of Thursday’s follow through. This is very negative as few follow through days are successful with distribution so early. The major averages moved further below the critical 50dma and closed in the lower half of their intraday trading ranges. Leading stocks reversed as well and the leaders index finished down by .68%. The index again tagged it’s important 17 day moving average and closed above it. Volume was higher than yesterday but still below average. This showed distribution on the leaders index as well as the major averages. I can see few reasons to be in the market right now. Breakouts are not working and even trading in index ETF’s is difficult due to the volatility we are seeing. I have found that when I have been hurt in the market it is usually because I was playing around in it when I shouldn’t be. For now cash is the place to be. Jerry