Leaders Index 7-15-14

The markets had a weak day today. The major averages opened higher but couldn’t hold their gains. They sold off pretty hard and even though they closed off their lows all the major averages finished in the lower half of their intraday ranges. The COMPQ led the way down with a loss of .54% while the SPY was off by .19%. Small caps were weakest again with the RUT declining 1.01%. Volume was higher across the board producing distribution on the Nasd averages. The SPY barely avoided a distribution day by dropping a fraction less than the distribution thresh hold, but it was a negative session for the New York stocks as well. Leading stocks were hit as well with the leaders index selling off by 1.49%. Volume was slightly lower than yesterday so there was no distribution on this index. The close was right on the important 17dma. If the index, which dropped below this moving average and rallied back above it, can’t hold it would be a very negative sign. The distribution day count is pretty high right now and quality growth stocks are not acting well. This is a very difficult market to try to operate in and until there is a clear trend in one direction or another having a large cash position is a good idea. Jerry