Leaders Index 11-6-25

The market had another difficult session today. The major averages opened lower and it was pretty much all downhill from there. All the major averages finished near the bottom of their intraday trading ranges. The COMPQ and the NDX fell 1.90% and 1.91% respectively. The SPX lost 1.12%. Volume was higher across the board, producing distribution on all the major averages. Leading stocks were hit hard today, more than the overall market. The leaders index fell 5.97% and closed low in its trading range. Volume was higher and well above average. The index also broke below its 50dma support, usually the kiss of death for leading growth stocks. The action of the market today was bad. At this point the rally is under real stress and could be about over. The market continued the pattern of large declines on higher volume and smaller rallied on lighter volume. This is negative action. Market internals were weak and the equal weighted
ETFs of the major averages lost ground. Maybe the worst part of recent action is the hard hits leading stocks have taken. Leaders have broken major support and breakout failures are common. The rally is in real trouble and may well be over. There could be a bounce if the shutdown ends, but right now the picture has darkened considerably. Protecting the gains made in the rally is now the top priority. Jerry