Leaders Index 9-5-17

The market opened lower and it was pretty much all downhill from there. A little later buying saw the major averages finish off their lows, but the losses were meaningful. The Nasd averages were weakest with the COMPQ and the NDX losing .93% and .92% respectively. The SPX was off by .76%. All closed in the lower half if their intraday trading ranges. Volume was mixed, slightly lower on the Nasd and higher on the New York. This was enough to produce a new distribution day on the New York averages, but not the Nasd ones. Leading stocks sold off as well, but showed a better overall picture than the general market. The leaders index was lower by .82% today, about in line with the overall market. The index however closed high in its trading range, a sign of support. Volume on the index was higher than yesterday, but the fact that it closed so high in its trading range kind of negates the distribution. The index remains above all its short term moving averages and the relative strength line is still strong. There have been many short term selloffs in the recent past and all have been contained at very small levels. Last week a positive reversal after another North Korean provocation sent the market briefly lower and led to a nice recovery. One of these days there will not be a quick recovery and the market will have a meaningful correction, it’s just that no one knows when that will be. The next two or three days should give us an idea if there will be a fast recovery now. Jerry