Leaders Index 1-23-14

The market had a bad session today. Negative manufacturing news out of China caused the major averages to gap down at the open. They bounced along their lows until a late rally erased some of the losses. The SPY was off .89% while the the NYA fell .96%. Both closed in the lower half of their intraday trading ranges. The COMPQ, which has been the strongest lately rallied late and closed at it’s high of the day, but still down .57%. Volume was higher across the board, so there was distribution on all the major averages. Leading stocks got hit very hard as well with many suffering large multi percent losses. The leaders index closed off .96% on lower and about average volume. Many components of the index had large losses but the decline in the index was mitigated by the 16.48% gain in NFLX. The index held yesterday’s breakout and closed in the upper half of it’s trading range. Today was a negative session but the amount of damage done to the major averages and the leaders index was not severe. Late cycle markets are usually bumpy and the distribution count is high, but the rally is still intact, unless we get any more days like today. Jerry