Leaders Index 5-8-14

The market opened strong today and all the major averages had solid gains early in the session. About half way through the day there was a reversal and the market turned negative for the day. A small late rally allowed the major averages to close off their lows but all closed near the bottom of their intraday trading ranges. The COMPQ again led the way lower with a loss of .40% while the SPY was off by .14%. Volume was slightly lower across the board so there was no distribution on the session. Leading stocks again performed poorly with the leaders index falling 1.08%. The index also closed near the bottom of it’s trading range and is near the lower trend line. A break of this line would be very negative. The relative strength line of the index was also lower and has set a new low for the correction. The RUT was also lower today with a decline of 1.0% on the day. This index of small cap stocks moved further below it’s 200dma and is showing real weakness in this segment of the market. It is hard to find an argument to be in the market right now and until this trendless pattern is resolved one way or the other the side lines are the best place to be. Jerry