Leaders Index 6-27-17

It was an ugly day all around. After opening lower the major averages spent the rest of the session selling off. The decline gained steam when it was announced that the vote in the Senate on healthcare reform would be delayed, but there was weakness well before that. The Nasd averages and the tech stocks were hit hardest with the COMPQ lower by 1.61% and the NDX off by 1.83%. The semiconductors stocks were the weakest as the SOX fell 2.71%. The New York stocks did better as the SPX was off by .81%. All the major averages closed at the lows of their intraday trading ranges, showing there was little if any buying interest as prices fell. Volume was higher across the board, but the change on the Nasd was very small. This added a new distribution day on all the major averages. Leading stocks were hit hard with the leaders index declining 2.07% and closing low in its trading range. Volume was slightly lower than yesterday but still above average, so there was no distribution in the leaders index. The index seems to have fallen below the consolidation it has been in for a couple of weeks. This is very negative. The Nasd stocks and techs in general were hard hit today. Both the NDX and the SOX are now below their respective 50dma’s. The COMPQ is just above this important support level. Financials were up a little today but besides that there was little good news. The rally that began after the election is under the most stress it has been. Quality growth stocks acted well for several months, but this seems to be changing. Leading and canslim style stocks look like they are clearly rolling over. A good deal of caution is warranted right now. Jerry