Leaders Index 6-16-23

The market took a break yesterday after its recent advance. After opening higher the major averages quickly reversed and spent the rest of the session working their way lower. All the major averages finished near their intraday trading lows. The Nasd averages sold off more with the COMPQ and the NDX falling .68% and .67% respectively. The SPX declined .37%. Volume was higher across the board. The reason for the higher volume was that Friday was an expiration day that always drives up the volume. It does however count as a distribution day on all the major averages. Leading stocks sold off as well with the leaders index falling 1.34% on the day. The index closed low in its trading range on higher expiration induced volume. The index tagged its 17dma support level but held it. The market sold off after a strong advance in recent weeks. It was a pretty orderly decline as only small amounts of recent gains were lost. The volume was high and there was a new distribution day but that was caused by the futures and options expiration so while it counts as distribution, it was not a really bad day. The overall distribution count is low due to the rise in index prices causing older distribution days to drop off. The market is still extended after its recent rally and we are likely due for some corrective action. It should either consolidate or pull back a bit. The short term indicators I look at are close to rolling over, signaling some short term weakness. Overall the market appears to be in good shape and after allowing the moving averages to catch up to the price the rally could well resume. Jerry