Leaders Index12-12-25

The market got hit yesterday with declines across the board. The major averages opened lower and worked their way down the rest of the day. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX fell 1.69% and 1.91% respectively. The SPX declined 1.07%. Volume was mixed, higher on the NASD and lower on the New York. Leading stocks were hit as well. The leaders index lost 2.29% on the day. The index closed low in its trading range on lower and below average volume. The market sold off yesterday, mostly in the tech stocks and concentrated in AI. AVGO reported earnings after the close on Thursday and the market didn’t like the report. There was selling across the tech sector, but the rest of the market held up pretty well. The NASD averages were hit hardest and sold down to their 50dma’s. The NDX closed right on this important moving average. If they break this support it would be very negative. There was real damage done yesterday, but it wasn’t enough to change the overall picture. The market does need to rally pretty quickly to prove it was just a short decline. There is a lot of economic news coming out next week and that could effect the market. Right now the rally is still on track, but the tech sector has to recover or the situation could change. Jerry