Leaders Index 5-19-16

It was overall another negative session today. The major averages sold off early and pretty hard, but a little less than two hours into trading they turned around and rallied for the rest of the day. After recovering more than half of their losses they finished high in their intraday trading ranges. The COMPQ closed with a loss of .56% while the SPX lost .37%. Volume was lower across the board so there was no distribution, something of a positive. Leading stocks were lower as well with the leaders index declining .73% on the day. It too closed in the upper half of it’s intraday range, but volume was higher than yesterday. This produced a distribution day on the leaders index. It continues to move further below it’s short and intermediate term moving averages and the chart continued to worsen. The major averages continue to work their way lower and their charts are heading south as well. It is hard to argue that the rally that began on 2/11 is still alive. The support that came in today has an artificial feel to it and smacks of someone trying to prevent the market from going down This is a difficult environment and the sidelines are probably the safest place to be. Jerry