Leaders Index 2-24-23

The market put in another negative session yesterday. The major averages opened lower and bounced around most of the session while working their way a bit higher. All the major averages finished in the upper half of their intraday trading ranges but still with losses due to the opening gap. The COMPQ and the NDX fell 1.69% and 1.73% respectively. The SPX lost 1.05%. Volume was lower across the board in about the only positive action of the day. Leading stocks were lower as well but held up better than the overall market. The leaders index fell .20% on the day and closed high in its trading range. Volume was slightly higher than Thursday and the index remained below its 17dma. The market continued its corrective action yesterday with more losses in the major averages. Important support was also broken as the COMPQ fell below its 200dma and the SPX lost its 50dma. It looks like the January and early February rally is running out of steam. The market avoided distribution yesterday but the count is getting high. The PCE came in higher than expected yesterday, confirming other recent inflation numbers. The market is pricing in more interest rate increases and that is putting pressure on the market. My short term indicators continue to point down and that would suggest lower prices in the short term. Jerry