Leaders Index 9-29-14

The market got off to a pretty ugly start today. The major averages gapped lower at the open, mostly it seems on news from Hong Kong, but saw it’s lows in the first five minutes of trading. After a rally that saw the COMPQ trade briefly in positive territory the market bounced around for the rest of the session. All the major averages finished trading near or at their intraday highs, a sign of strength. Volume was higher across the board, producing distribution on the New York averages while the small loss in the Nasd averages means there was no distribution there. The SPY was lower on the day by .25% while the COMPQ was off by .14%. Leading stocks were mixed with the leaders index up by .07%, really about unchanged on the day. The index is consolidating now and recent action seems to be getting tighter. The index is trading right on it’s converging 9 and 17dmas. The relative strength line of the index went into new high ground. The market actually acted better than the closing prices would suggest. The fact that they recovered significant early losses and closed near their intraday highs shows that there was support. They also remained above their respective 50dmas. The market is struggling and the distribution count is high, but there does seem to be a bid under the market. There are signs that the market is in a topping process, but it doesn’t seem to want to give it up just yet. Jerry