Leaders Index 4-21-16

The market opened lower today and was down for the rest of the session. Most of the weakness was in the New York averages, which have been leading lately. The SPX fell .52% while the COMPQ declined only .05%. All the major averages closed at or near their intraday lows, a sign of a lack of support. Volume was lower across the board, according to IBD, so there was no additional on the day. Esignal showed volume on the New York to be higher so we have a bit of a conflict. Leading stocks were hit harder than the overall market with the leaders index declining .70% and closing in the lower half of it’s intraday trading range. Volume on the index was higher but still below average, so there was distribution on the leaders index. The index broke below the confluence of it’s short term 9dma and 17dma. It has been dancing with these moving averages for as long as it has been in it’s recent consolidation and today broke decisively below this important support. Interest rates have increased in the last few days as the rate on the benchmark ten year Treasury broke above it’s recent consolidation area. This caused a decline in interest sensitive securities and the Utilities index took a sharp hit in the last two days. The breakdown in the leaders index today is pretty negative and the market is looking sloppy. We are close to all time highs and if the major averages can’t break into new high ground they will likely resume their decline. The rally that began in mid February is in some trouble. Jerry