Leaders Index 7-29-14

The market opened with solid gains today but couldn’t hold on to them. After setting it’s intraday high in the first hour and a half the major averages spent the rest of the session bouncing around until late weakness caused them all to close at their session lows. The COMPQ was the strongest of the major averages with a loss of only .05% while the SPY fell by .45%. Small caps were the only winners with the RUT rising .19%. Volume was higher across the board which produced a distribution day on the New York averages. The COMPQ avoided distribution because of it’s small loss. Leading stocks were weaker than the over all market as the leaders index fell 1.19% on heavier and well above average volume. This was distribution on the leaders index as well. The index held it’s 9dma so it is not showing any real damage, but it isn’t showing any real strength either. Both the major averages and quality growth stocks are holding near their highs, but they both appear to be struggling. It is a difficult market to make any progress in and although it it is not selling off it isn’t going anywhere either. Caution is warranted as this can turn into a death of a thousand cuts situation if you are not careful. Jerry