Leaders Index 9-22-15

The market sold off pretty hard today. The major averages opened sharply lower and traded around their lows most of the session until a little late rally saw them finish off their lows. The COMPQ lost 1.50% on the session while the SPX declined 1.23% The SPX closed in the Lower half of it’s intraday range while the COMPQ finished in the upper half of it’s intraday range, although the gap down at the open in this major average still allowed a large loss. Volume was mixed. It was clearly higher on the New York, but very close on the Nasd. According to esignal volume was very slightly higher. This means that there was distribution on the New York averages and we can wait and see what IBD says about the Nasd. Leading stocks sold off as well today with the leaders index losing 2.44% on slightly lower and below average volume. The index broke below it’s short term 9dma and is sitting on it’s 17dma. A break of the 17dma would be very negative. So far the thesis that the COMPQ would test the 200dma is working out. This is the most important resistance and the recent attempt to clear it looks like a failure. I would watch to see if the major averages now retest the recent lows. There will be no update tomorrow to observe the Yom Kippur holiday. I have a lot to atone for. Jerry