Leaders Index 2-28-23

It was another disappointing session. The major averages opened slightly lower and moved to a moderate rally. Late selling came in and all the major averages sold off into the close and finished near their intraday trading lows. The losses were moderate with the COMPQ and the NDX losing .10% and .13% respectively. The SPX declined .30%. Volume was higher across the board. This action produced a new distribution day on the New York averages. Leading stocks did better than the overall market with the leaders index gaining 1.19% on the day. The index closed low in its trading range but regained its short term moving averages. Volume was higher and above average. The relative strength line of the leaders index also made a new high today. The market looked like it was trying to move higher as it produced some decent gains during the day. For the second day in a row late selling came in and the gains were lost with the major averages finishing near their lows. This is negative action. The SPX closed below its 50dma today in an important breach of support. The COMPQ held its 200dma, but not by much. The market is acting weak and will likely decline further in the short term. It will probably not be anything major, but it looks like there could be some near term pain ahead. Jerry