Leaders Index 5-19-22

The market opened slightly lower and bounced around both sides of unchanged most of the day before closing with moderate losses. All the major averages finished low in their intraday trading ranges with the losses pretty evenly divided. The COMPQ and the NDX fell .26% and .44% respectively. The SPX lost .58%. Volume was higher across the board. It gained 3.43% on the Nasd and 1.39% on the New York. That combined with the price declines was enough to produce a new distribution day on all the major averages. Leading stocks were a little higher on the day with the leaders index higher by .28%. The index closed low in its trading range on lower and below average volume. After yesterday’s decline you would like to see some kind of bounce. There was none today. The major averages closed weak and just built on their recent losses. The negative signs continue to build. Yesterday I tried to put together a new leaders index as there was a follow through, but I couldn’t find enough stocks to build a proper index. The only way was to make it almost an energy index as those were the only stocks acting well. That is an energy ETF, not a leaders index. There was also distribution again today, marking distribution in the first two days after a follow through. This is very negative. Today the INDU traded below the low of the rally day. The COMPQ and the SPX have not, but it is likely just a matter of time. It may not be “official” yet, but this follow through has pretty much failed. Jerry