Leaders Index 10-1-19

The market got pasted pretty good today. After opening higher the major averages topped out in about a half hour and sold off hard from there. The trigger was a much weaker than expected manufacturing report. Unlike the mostly noise coming out of Washington, this is a real number that could have negative implications for the economy if it continues. The New York averages were a little weaker with the SPX lower by 1.23%. The COMPQ and the NDX were off by 1.13% and .84% respectively. All the major averages closed at or near their intraday trading lows, showing little support as prices fell. Volume grew across the board. It was higher by 15.82% on the New York and 32.04% on the Nasd. This shows that large institutional players were selling stocks heavily and produced a new distribution day on all the major averages. Leading stocks sold off as well with the leaders index declining 1.55% on the day. The index closed low in its trading range and volume was down slightly. The index is now declining below it declining short term 9dma and 17dma. The market sold off hard on some weak manufacturing data. This is something to worry about if it persists. The Losses were substantial and volume was very high. This is the footprint of big institutions selling stock. The accumulation/ distribution numbers were very bad. The count of distribution days is now high. In the worst action of the day the New York averages joined the Nasd averages under their important 50dma’s. I said previously that this would show the market wants to go lower. The leading stocks have been telling us for a while that things were not right. It seems that the major averages are joining them. It looks like lower prices ahead. Jerry