Leaders Index 9-26-16

The sell off that began on Friday continued today. The major averages opened lower and continued down for the entire session. All the major averaged finished at their intraday lows, a negative sign that there was little buying interest as prices fell. The COMPQ fell .91% while the SPX lost .86%. Volume was lower across the board and below average on both exchanges, showing that large institutional players were not big sellers today. Leading stocks sold off today as well and declined about in line with the overall market. The leaders index lost .92%, but closed in the upper half of it’s intraday trading range. This is a sign of support and is encouraging. The index also held above all it’s short term moving averages. A break of these support levels would be a worrisome thing. The fact that we have had two big down days in a row is not good. The Nasd averages have pretty much given up all the gains they made after the Fed meeting next week and the New York averages all moved further below their important 50dma’s. The lower volume means we did not add to the distribution count, but if we get many more days like this the picture will darken considerably. Jerry