Leaders Index 3-24-15

There was some early strength today, especially in the Nasd averages, but it couldn’t hold. Late selling saw the major averages finish at their intraday lows, the third day in a row for the COMPQ and two for the SPX. The losses were moderate, .61% on the SPX and .32% on the COMPQ. The best relative strength was in the small caps with the RUT losing only .10%. Volume was higher across the board, producing distribution on all the major averages. The distribution count is now pretty high, which is a big red flag. Leading stocks were lower as well with the leaders index falling .67% on the day. Volume was a bit higher than yesterday and about average. The index closed in the lower half of it’s intraday range but off it’s lows. Despite the high distribution count there has been little real damage done so far. Both the major averages and the leaders index are near their highs and above all their short term moving averages. It would be good to see some strength quickly to increase confidence and any more declines on heavy volume could cloud the picture fast. Jerry