Leaders Index 3-8-16

The market pulled back today. The major averages opened lower and after a mid day rally attempt sold off into the close to finish at their intraday trading lows. The COMPQ finished with a loss of 1.26% while the SPX was lower by 1.12%. Volume was lower across the board, which is good as it shows that large institutional players were not heavy sellers after recent positive action. Leading stocks had a down day as well with the leaders index falling .92% on lower and below average volume. The index closed in the lower half of it’s intraday range and at it’s low traded below the important 17dma. . The index closed below the short term 9dma and is now below this moving average for the first time in weeks. It is very important for the index to hold the 17dma as the best quality stocks rise above this important moving average. Today was the first real day of negative action in over a week. The major averages avoided distribution through the lower volume so the count remains modest. The biggest hits today were taken by the semiconductors and the small caps with the SOX losing 2.25% and the RUT falling 2.40%. The SOX fell back below it’s 200dma after spending two days above it. The charts still look ok after today’s decline. The major averages must not break back below their respective 50dma’s, which they recovered in this rally. As of now the current rally looks intact. Jerry