Leaders Index 1-6-16

It’s starting to look pretty ugly out there. The major averages again opened lower and were little changed for the rest of the session. A little late buying saw the major averages finish off their intraday lows, but that is about the only good thing you can say about the day. The SPX fell 1.31% while the COMPQ declined 1.14%. Both closed in the lower half of their intraday ranges, so there was not much buying interest near the close. Volume was higher across the board and was above average on both exchanges. This shows that large institutional players were unloading stocks and produced distribution on all the major averages. Leading stocks were lower as well with the leaders index falling .80%. The index closed in the lower half of it’s trading range on higher and above average volume. It remains above it’s important short term moving averages and the 9dma is close to breaking below the 17dma. The declines in the small and mid cap averages were worse than in the major averages, while the worst action of the day was in the SOX, which fell 2.81%. There isn’t much good to saw about the market now and the futures, as of this writing, were getting hit again after another large decline in the Chinese market. There aren’t many reasons to be holding positions right now. jerry