Leaders Index 7-26-18

The market put in a negative session today led by the Nasd averages. The FB decline of 19% along with some weakness in other tech stocks caused the Nasd averages to lead the way lower. The COMPQ and the NDX fell by 1.01% and 1.44% respectively. The SPX declined .30%. All the major averages finished at their intraday trading lows, showing that there was little buying interest as prices fell. Volume was higher across the board, producing fresh distribution days on all the major averages. Leading stocks sold off as well with the leaders index lower by .84%, a smaller decline than yesterday’s rally. The index closed in the upper half of its trading range, a sign of support. Volume on the leaders index was higher so there was distribution in quality growth stocks along with the major averages. The relative strength line of the index closed right on its 50dma. The poor earnings report and conference call from FB caused the Nasd averages to sell off. The SPX was lower as well while the irrelevant INDU was higher. There was strength in the small and mid-cap stocks and the semiconductors were particularly strong. The SOX was higher by 1.87% and crossed above its 50dma. AMZN had a good earnings report after the close so there will likely be a little strength tomorrow. The first report on 2nd quarter GDP will be out before the open tomorrow. It is hard to tell which way things will go as the market is being buffeted by earnings reports. I will be away for a few days. The updates will resume the middle of next week. Jerry