Leaders Index 12-17-15

The market pretty much reversed yesterday’s gains today. The major averages saw their intraday highs in the first five minutes of trading and it was all down hill from there. All the major averages closed at their intraday lows with the SPX losing 1.50% and the COMPQ falling 1.35%. The SPX fell back below the 50 and 200dma’s that it regained yesterday and the COMPQ fell back below it’s 50dma. The saving grace on the session, if there was one, was that volume was lower across the board. This allowed the major averages to avoid distribution days, which can kill a rally attempt if they occur so soon after a follow through. Leading stocks got hit as well with the leaders index falling 1.93% on lower and below average volume. This allowed the leaders index to avoid distribution also, although it remains below important moving averages. Today’s action reversed a lot of the positives we saw in yesterday’s follow through. The only positive is that there was not that much volume, so large institutional players were not heavy sellers. The action in the next few days will tell us if the rally attempt has any legs. I will be away for the holidays. The updates will resume on the Monday after Christmas. If the market is still in good shape I will put together a new leaders index then. I hope everyone has a good holiday. Jerry