Leaders Index 11-12-15

The market had been consolidating it’s recent advance in an orderly manor, until today. The session’s action was not orderly and amounts to a negative day. The major averages opened lower and after a weak rally attempt spent the rest of the day selling off. All the major averages closed at their intraday trading lows, a sign of weakness. The COMPQ lost 1.22% while the SPY declined 1.40%. The SPX and the DOW also closed back below their respective 50dma’s. The real weakness was in the small and mid caps with the RUT and MID losing 1.97% and 2.11% respectively. Volume was higher across the board, showing that large institutional players were selling stocks. This also added a distribution day to all the major averages. Leading stocks were hit as well with the leaders index falling 1.90% on heavier and slightly below average volume. This shows distribution in quality growth stocks as well. The index also closed below it’s important 17dma support level. This was the first day since this consolidation started that real damage was done. Much more like this will darken the picture considerably. Jerry