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Leaders Index 4-23-18
After bouncing around today the market closed slightly negative. The major averages were mostly lower during the session. The Nasd averages were the weakest with the COMPQ off by .25% while the NDX lost .28%. The New York averages did better with the SPX basically flat after a .01% gain. The Nasd averages all closed low in their intraday trading ranges while the New York averages finished in about the middle of their ranges. Volume was lower across the board and below averages on both exchanges. This means that there was no new distribution today. Leading stocks sold off as well with the leaders index lower by .88% and closing slightly below the mid point of its trading range. The index is now below the short term 9dma support, now resistance, level and it tagged the 17dma at its lows. Volume was higher but still below average. This shows distribution in quality growth stocks. The action of the market today was overall slightly negative. The leaders index broke short term support on higher volume while the major averages generally moved further below their 50 day moving averages. One thing I saw today that bothered me was the action in NFLX. Last week it gapped higher after a strong earnings report and produced a buyable gap up. Today it fell 2.77% and closed below the low of the gap up day, producing a breakout failure. When top stocks like NFLX act like this it has to be a cause for concern. GOOGL also produced a generally positive earnings report and it was trading lower after hours at the time of this writing. The rally attempt is still intact after the last follow through, but the market appears to be struggling. Jerry