Leaders Index 3-6-19

The market took a pretty good hit today in the most negative session we have seen in a while. The major averages opened slightly lower and worked their way down the rest of the day. The Nasd averages were weakest with the COMPQ and the NDX losing .93% and .62% respectively. The SPX declined .65%. The worst losses were taken by the small caps as the RUT fell 2.01%. All the major averages finished at or very near their intraday trading lows, a sign of weakness. Volume was higher across the board, producing fresh distribution days on all the major averages. Leading stocks got hit hard as well with the leaders index fell 1.27% and closed low in its trading range. The index fell below its short term 9dma and is sitting right on its important 17dma support level. Volume was lower and below average so there was no distribution in the leaders index. The market had its most negative session in a while today and about everything that could look bad did. The losses in the major averages were significant and they closed low in their trading ranges on heavy volume. We are seeing the first real signs of large institutional players dumping stocks. The Distribution count is also getting heavy and must be watched closely. Right now the most important item is again the 200dma of the major averages. They are all less than one percent above this critical support level. If they break below it then the rally is likely over. Jerry