Leaders Index 10-31-16

The market opened strong today and rallied for a couple of hours. The major averages topped out and sold off into the close. They were little changed on the session with the COMPQ lower by only .02% and the SPX declining .01%. All the major averages finished at their intraday trading lows, a sign of weakness. Volume was mixed on the day, higher on the New York and lower on the Nasd. Leading stocks were lower as well with the leaders index falling .35% and closing in the lower half of it’s intraday range. The index closed just below the important 50dma and thus is sitting right on support. The down trending short term 9 and 17 day moving averages look like they are a ceiling right now. The support and resistance lines will converge soon and we should get a better idea of where the leaders index will go. Right now the chart is not looking very good. The fact that the market opened strong and closed weak is a telltale sign of a market that wants to go lower. With the Fed announcement on Wednesday and the employment report on Friday, not to mention the election next week, we are in a kind of never never land. Unless there is a real surprise there will probably not be much action for the next week. Jerry