Leaders Index 10-7-25

The market took a break and sold off today. The major averages opened a bit higher but quickly started selling off. The selling lasted most of the day and all the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .67% and .55% respectively. The SPX declined .38%. Volume was slightly lower across the board, so there was no new distribution. Leading stocks were mixed on the day. The leaders index gained .38% and closed at a new high. The relative strength line if the index also made a new high. The index closed in about the middle of its trading range on lower and well below average volume. . The market took a rest today after its recent run to new highs. The declines were pretty moderate and the charts of all the major averages still look good, there were no short term moving averages violated. A pullback after the good advance we have seen is not unusual. The lower volume on both exchanges shows that large institutional players were not heavy sellers today. Market internals were negative and the divergence in the NYSE advance decline line is becoming more apparent. That aside the overall picture still looks good. Jerry