Leaders Index 6-13-16

The market took another good shot today. There was weakness overseas that caused the major averages to open down. After a pretty feeble rally attempt the market sold off steadily for the rest of the day. There were some solid price losses with the COMPQ falling .94% and the SPX losing .81%. Both closed right at their intraday lows, along with several other important averages. This showed little buying interest as prices fell. Volume was mixed, higher on the Nasd and slightly lower on the New York. This added another distribution day to the Nasd averages. Leading stocks sold off as well with the leaders index declining 1.01% on the day and finished near it’s intraday lows. Volume on the index increased substantially and was above average for the first time in two weeks. The index also broke below the 17dma, a critical support level. The index had risen above the 9 and 17dma’s for almost two months. When a leading stock breaks it’s 17dma, particularly on volume, it is a big red flag. The COMPQ along with several other important averages broke back below their 50dma’s today. This is important support and losing it is a big deal. The current rally is under real stress after two big losing sessions. The battle with the old highs continues, but right now it looks less likely that the major averages will overcome this resistance. Jerry