Leaders Index 9-23-19

The market pretty much went nowhere fast today. The major averages opened lower and then tried to stage a small rally before some late selling came in. They all closed little changed. The COMPQ and the NDX were each down by .06% while the SPX declined .01%. All the major averages finished in about the middle of their intraday trading ranges. Volume was much lower than Friday, as you would expect after an expiration day. It was off by 22.46% on the Nasd and 21.40% on the New York. Leading stocks mirrored the overall market with a pretty much flat session. The leaders index was completely flat, an unusual event. The index closed in the upper half of its trading range and volume was lower but well above average. The market seems to be struggling right now. The major averages have not been able to break above their recent highs. They are holding above their 50dma’s, but the action is at best hesitant. Leading stocks are acting worse than the overall market. The leaders index looks pretty bad right now. The index continues to bounce along its 50dma. It has either touched or traded below this important support level for ten trading sessions. When you test support to many times the odds of a failure increase. The 17dma overhead resistance is almost ready to cross with the 50dma, so a break of one or the other will come in a matter of days. In addition recent breakouts are not working well, this is usually one of the biggest negatives you can have. The market and leading stocks both need a strong move higher, preferably on heavy volume or the next move may well be lower. Jerry