Leaders Index 8-30-16

The market traded lower all day, but the losses were fairly mild. The COMPQ lost .18% on the session while the SPX declined .20%. Both closed just below the mid point of their intraday trading ranges. The SPX is below both it’s short term 10dma and 21dma. The COMPQ is below it’s 10dma but not it’s 21dma. Volume was higher across the board today, showing that large institutional players were more active in today’s decline than they were in yesterday’s advance. This was enough to produce a distribution day on the SPX, but the decline in the COMPQ was just below the threshold for distribution. Leading stocks were generally lower as well with the leaders index declining .40% on higher and about average volume. This was a decline of more than the overall market and continues the consolidation the index has been in for weeks. There are a few components that have clearly broken, but more that are acting well. The index is sitting right on it’s important 17dma. This support level must hold or it will be a very negative sign. Overall the market is acting a bit sloppy right now. The decline today was on higher volume than the advance yesterday. We will break out of this consolidation one way or the other and that will tell us where the market is going and the fate of the rally. Jerry