Leaders Index 2-25-25

The market had another disappointing session today. The major averages opened slightly lower and it was mostly downhill from there. The New York averages finished in the upper half of their intraday trading ranges while the NASD averages closed low in their trading ranges. The COMPQ and the NDX fell 1.35% and 1.24% respectively. The SPX declined .47%. Volume was higher across the board, adding another distribution day on all the major averages. Leading stocks continued to decline today. The leaders index dropped another 3.00% on the day. The index closed in he upper half of its trading range on higher and above average volume. The index broke below its 50dma. The market continued to sell off today. The picture is starting to look pretty ugly. All the major averages moved further below their 50dma’s. The leaders index broke below this important moving average, usually a sign that leading growth stocks are broken. At this point it is hard to make the argument that the rally isn’t over. We could still bounce around in the trading range we are still in, but there is so much damage at this point that a quick return to a strong market is unlikely. That said NVDA is reporting earnings tomorrow and a strong report could move the market higher, at least for a short while. Jerry