Leaders Index 8-19-15

It was a volatile session today as the major averages had significant losses early. After the Fed minutes came out and it seemed that there would not be an immanent rate hike the market rallied and the major averages got to breakeven for the day. This didn’t last long as the market began selling off again and all the major averages closed low in their intraday ranges. The COMPQ declined .80% while the SPX was off by .83%. Volume was much higher across the board and about average. This produced distribution days on all the major averages. Leading stocks were weak as well with the leaders index falling .94% and finishing in the lower half of it’s intraday range. Volume was about flat with yesterday and the index is now back below it’s short term 9 and 17dma’s. The COMPQ is now well below it’s 50dma and the SPX is sitting on it’s 200dma. Mike Scott did an interesting screen I today and found that the average stock in the Marketsmith database is 21.39% below it’s 52 week high. This shows that a smaller and smaller number of big cap stocks are preventing the major averages from looking even worse. This is typical late cycle action as the market gets narrower and narrower. I see little reason to be taking positions right now. Jerry