Leaders Index 12-6-23

The market staged a negative reversal today. The major averages opened with solid gains after the ADP report came in below expectations. Selling came in and continued mostly into the close. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .58% and .56% respectively. The SPX declined .39%. Volume was mixed, higher on the New York and lower on the Nasd. This combined with the price decline produced a distribution day on the New York averages. Leading stocks were lower as well with the leaders index falling .89% on the day. The index closed low in its trading range on lower and below average volume. The market started off strong and then reversed lower. This is negative action and combined with a couple of other indicators points to some weakness in the short term. The overall distribution count is modest and we are more likely looking at some short term consolidation or pullback. The chart of the leaders index shows a big red candle and the index broke the short term 9dma. The major averages have been going sideways for almost a couple of week and it may continue a bit longer. The market may need a trigger to start it moving up again, maybe a weaker than expected jobs report on Friday. I would not be surprised to see some more weakness after today’s reversal, but the overall trend is still intact. Jerry