Leaders Index 6-5-25

The market had a bit of a negative reversal today. After some moderate early gains the major averages sold off into the close. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .83% and .80% respectively. The SPX lost .53%. Volume was higher across the board. This produced a new distribution day on all the major averages. Leading stocks sold off as well. The market started out with modest gains today, but it couldn’t hold on to them. Selling came in and lasted the rest of the day. Volume was higher, producing a new distribution day. The overall count is still not at worrisome levels but it is at a level that must be watched closely. There were some earnings reports after the close, led by AVGO, that don’t look like they are being week received. The futures are down as of this writing. Some leading stocks also were hit pretty hard today, but overall quality growth stocks are mostly still ok. The leaders index was lower on higher volume, but held its short term 9dma at its lows. The chart of the index still looks very good. Today’s reversal was disappointing, but doesn’t mean the rally is in real trouble. If the weakness continues that could change. Right now the rally remains on solid ground. The employment report will come out before the open tomorrow. Jerry