Leaders Index 8-7-25

The market had something of a reversal today. The major averages opened higher but topped out quickly and sold off most of the day. A little late strength saw the major averages finish in about the middle of their intraday trading ranges. The NASD averages led the way due to strength in big cap tech stocks. The COMPQ and the NDX gained .35% and .32% respectively. The SPX declined .08%. Volume was mixed, higher on the NASD and pretty close to unchanged on the New York. Leading stocks were mixed. There was some weakness in the ETFs of leading growth stocks, but the leader’s index did well. The index gained .84% on the day. It closed high in its trading range on lower but below average volume. This is a new high for the index on both a price and a relative strength basis. The market had a disappointing session overall today. The major averages opened with decent gains, but couldn’t hold them. They reversed lower and only closed off the lows due to some late strength. The NASD averages did better due to some strength in AAPL and the semiconductor stocks. After yesterday’s positive action it would have been nice to see some follow through. It didn’t happen today as early gains were mostly lost. The rally isn’t in serious trouble yet, but it is struggling recently. The action of the last week and a half or so shows that the rally is having some problems. It is not in trouble, but if this action continues to long it might be. The major averages are either consolidating recent strong gains, or this is a topping process that will lead to the ultimate end of the rally. It is too early to tell right now, but a break into new high ground on volume would make me feel better. Jerry