Leaders Index 9-26-23

The market continued its negative action today. The major averages opened lower and mostly worked its way down the rest of the day. All the major averages finished near the bottom of their intraday trading ranges. The losses were pretty evenly divided with the COMPQ and the NDX lost 1.57% and 1.51% respectively. The SPX declined 1.47%. Volume was higher across the board, showing that large institutional players were selling stocks today. Leading stocks sold off as well with the leaders index falling .96% on the day. The index closed low in its trading range on higher and about average volume. The correction continued to deepen today. After yesterday’s weak bounce attempt on lower volume the selling resumed today on higher volume. This is very negative action. The increased volume today showed that institutions are still selling stocks. Interest rates and the dollar in moving sharply higher and the market is pricing in higher for longer interest rates. We are very oversold right now and the E rated accumulation/distribution stocks are at very high levels. We may see a short term rally here due to an oversold condition, but a meaningful bottom is not in sight yet. Jerry