Leaders Index 9-4-14

The market opened strong today with all the major averages posting solid gains on news of lower interest rates and QE from the ECB. The rally didn’t last long as all the major averages reversed off the session highs set after the first hour of trading. It was all down hill from there as the major averages sold off into the close and finished near their intraday lows. The COMPQ led the way down with a loss of .22% while the SPY was off by .15%. Volume was mixed, slightly higher on the New York and a bit lower on the Nasd. This means that there was no distribution on the day, but it was close. The leading stocks mirrored the overall market with the leaders index also losing early gains to close lower by 1.25%. Volume on the day was lower than yesterday so there was no distribution here either. The index closed near the bottom of their intraday ranges and finished just below the short term 9dma. The major averages all closed right on their short term 10dma’s. The charts don’t show much real damage, but the kind of reversal day we saw today is cause for concern. They are sometimes associated with corrections, weather short term or worse. The market needs to have some solid up days on volume quickly to reinforce the uptrend, but the last two day’s action is worrisome. Jerry