Leaders Index 11-4-25

After making new highs last week the last several days of market action have not been good. The major averages opened lower today and sold off the rest of the session. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell 2.04% and 2.07% respectively. The SPX lost 1.17%. Volume was lower across the board, about the only positive today. Leading stocks were hit hard. The leaders index fell 3.99% on the day. The index closed in the lower half of its trading range on higher and well above average volume. The index also broke below its short term moving averages. It was just early last week that the rally was looking good. Since then the action of the market has been troubling. It has pulled back from last weeks highs and the action of leading stocks has not been good. Earnings reports, even good ones, are not producing positive action. PLTR is a good example, it reported strong numbers after the close yesterday but sold off hard today. Last week there was also a confirmed Hindenburg Omen signal. This is not a real timing signal, but it tells you that the current run may well be getting old. We have been here before in this rally where short term selling corrected itself, and that may happen again. We are in a seasonally strong time right now and that could help, although September is usually weak and it did well this year so you can never be sure. The action of the market in the last few days is unnerving and a more cautious stance is warranted. Jerry