Leaders Index 2-3-26

The market had a rough session today. The major averages opened a little higher but then sold off most of the day. A little late strength saw the major averages finish off their lows, but still with significant losses and in the lower half of their intraday trading ranges. The COMPQ and the NDX fell 1.43% and 1.55% respectively. The SPX lost .84%. Volume was higher across the board, producing distribution on all the major averages. Leading stocks actually did pretty well today. The leaders index gained 3.69% on the day. This is a new high for the leader’s index on both a price and a relative strength basis. The index closed high in its trading range on higher and above average volume. The market took a real hit today in a nasty reversal. The NASD averages finished back below their important 50dma’s, a very negative sign. It looked yesterday like the market might right itself after last week’s weakness, but that looks less likely today. About the only really encouraging action today was in the leading stocks. They performed well today. Despite this, the action today was very negative and darkened the overall picture. A more defensive posture is warranted. Jerry
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