Leaders Index 10-22-19

The market opened higher today, but the gains didn’t last. The major averages gave up nice early gains and sold off into the close. All the major averages closed at their intraday trading lows, not what you want to see. The Nasd averages were the weakest with the COMPQ and the NDX falling .72% and .83% respectively. The SPX fell .36%. Volume was higher across the board, gaining 12.45% on the New York and 10.16% on the Nasd. This shows that there was more selling pressure by large institutional players than there was buying pressure yesterday. It also produced a fresh distribution day
on all the major averages. Leading stocks sold off as well with the leaders index falling 1.18% on the day. The index closed low in its trading range and broke below its short term 9dma support level. Volume was slightly lower, showing less selling pressure in quality growth stocks. The market continued to be difficult. After yesterday’s advance we had a higher volume declining session with distribution. Many leading stocks took significant hits and the big red candle in the chart of the leaders index does not look good. Futures are looking a little weak as of this writing. The market continues to bounce back and forth while making little if any progress in either direction. If the market is to rally meaningfully from here the major averages must break above their old highs with some real conviction. Right now they are having a lot of trouble doing that. Jerry