Leaders Index 2-10-16

The market opened higher today and all the major averages built up sizable gains. True to recent action the major averages saw their highs for the session about an hour into trading. It was all downhill from there as the major averages all finished at their intraday trading lows, as sign of real weakness. The SPX closed about unchanged with a small loss of .02% while the COMPQ held onto small gains, rising .35%, although it was up over 2% early. Volume was mixed on the day, slightly higher on the Nasd and lower on the New York. Volume rose later in the session so large institutional players didn’t believe the rally would hold and sold into it. Leading stocks did better than the overall market with the leaders index gaining .59% on lower but still above average volume. The index closed in the lower half of it’s intraday range in a weak green candle. The short term 9 and 17 day moving averages are now below the 50dma. The relative strength line of the index improved a bit but still looks pretty negative. Once again the market was unable to hold even a small rally. This is not an encouraging sign. There is no reason to be in stocks right now and until the picture improves cash is the place to be. Jerry