Leaders Index 10-16-25

The market had a bit of a reversal today. The major averages opened with nice gains but soon started selling off. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell .47% and .36% respectively. The SPX lost .63%. Volume was mixed, higher on the New York and really close on the NASD. That is distribution on the New York and likely on the NASD. Leading stocks were lower as well. The leaders index fell 1.08% on the day and closed low in its trading range. Volume was higher but still very light. The index held its short term 9dma. This was a disappointing session overall. The market opened with pretty nice gains and couldn’t hold on to them. A strong open and a weak close is not a sign of a strong market. Market internals were weak as the A/D line divergence continued. Today’s action raises the caution level a bit, but it doesn’t derail the rally overall. Today’s bad news had more to do with regional banks than tariffs. So far the major averages have gone sideways since the big reversal on 10/10. We will have to watch which way the major averages break from this sideways action. The weight of the evidence still favors the rally continuing, but I would sure like to see the major averages break to new highs soon. Jerry