Leaders Index 11-13-15

After Thursday’s weak action we needed some positive results to improve the picture. We didn’t get it on Friday. The major averages gapped lower at the open and worked their way down the rest of the session. All the major averages finished at their intraday trading lows, a sign of lack of support. The COMPQ led the way down with a loss of 1.54% while the SPX fell 1.12%. Volume was again higher across the board, showing that large institutional players were selling stocks. The COMPQ joined the SPX below it’s 200dma. Leading stocks were hit as well with the leaders index falling 2.20% on higher and above average volume. The index closed near it’s intraday lows and has broken below it’s critical 50dma support level. The relative strength line of the leaders index is now back below it’s 50dma. This is the first time the index has been below this important moving average. The distribution count has now reached dangerous levels and the fact that the major averages have again lost critical moving averages after just recently regaining them is a very bad sign. Quality growth stocks are under real pressure and stocks that have acted reasonably well lately are rolling over. It is difficult to try to call what this market is going to do, but a lot of caution is warranted now. Jerry