Leaders Index 5-3-16

The market opened lower today on weak manufacturing data from China. There was an attempt at a rally but much of that was lost and all of yesterday’s gains were wiped out. The COMPQ declined 1.13% on the session and the SPX fell .87%. Both closed low in their intraday trading range, a sign of lack of support. Volume increased across the board, showing that large institutional players were selling stocks today. The higher volume and the price declines produced new distribution on all the major averages. Leading stocks were lower on the session as well with the leaders index falling .33% ,less than the overall market. The index closed in about the middle of it’s intraday trading range and slightly above it’s 50dma support level. The fact that there was a low volume rebound yesterday followed by a higher volume decline today is very negative. The high distribution count and and the weak action in the last couple of weeks shows that the rally that began in mid February is under increasing stress. I will be away for a few days, the updates will resume the beginning of next week. Jerry