Leaders Index 7-21-16

After it’s recent advance the market took a rest today. The major averages opened lower and were in negative territory all day. A little late strength saw them close off their intraday trading lows, and the declines were fairly moderate. The COMPQ fell .31% while the SPX was lower by .36%. All the major averages finished low in their intraday ranges. Volume was higher across the board, but it was a very small increase on the New York. This was enough to produce distribution on all the major averages. This is not what you want to see on a pullback after an advance, but the overall distribution count is low right now so it is not that big a problem. Leading stocks were lower as well with the leaders index falling .72%. The index closed in the upper half of it’s trading range and volume, like the overall market, was higher but below average. The index continues to rise above it’s short term 9dma, although it did trade below this moving average today. The market is due to take a rest after a decent rally in the last couple of weeks. There was no real damage done to the charts of either the major averages or high quality growth stocks. The rally appears to be intact and it likes like there will be higher prices in a least the short term. Jerry