Leaders Index 8-5-25

The market couldn’t build on yesterday’s gains. After opening a bit higher the major averages sold off most of the rest of the session. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .65% and .73% respectively. The SPX declined .49%. Volume was higher across the board. This produced a distribution day on all the major averages. Leading stocks were mostly mixed on the day. Some ETFs of leading growth stocks were lower, but the leader’s index rallied .84% on the day. The index closed high in its trading range on higher and above average volume. This is a new high for the index on both a price and a relative strength basis. The market couldn’t build on yesterday’s gains, not the type of action you want to see. Volume was also higher today, producing a pattern of higher volume sell offs and lower volume rallies. PLTR reported strong numbers and the stock did well. The market didn’t respond. While the market rally is still ok overall, there are some yellow flags out there right now. An increased level of caution is warranted. Jerry