Leaders Index 7-16-19

The market sold off today pretty much from the open. The major averages were in negative territory almost the entire session and they all finished at or very near their intraday trading lows. The Nasd averages were weakest today with the COMPQ and the NDX losing .43% and .50% respectively. The SPX declined .34%. Volume was higher across the board. It was up by 12.87% on the Nasd and 18.07% on the New York. This is a significant increase in volume on a down day and produces a new distribution day on all the major averages. Leading stocks were a bit lower today, but outperformed the overall market. The leaders index was lower by .19% on the day and closed in about the middle of its trading range. The index held above its short term 9dma support level and volume was lower and well below average. There was no distribution in quality growth stocks. Today’s action was mixed. The decline in price was mild and not an issue in itself. You expect some consolidation or pullback after an advance and this looks ok. The problem today was the volume. You want to see lower volume when the market takes a rest. Today’s high volume showed that large institutional players were selling stocks today and produced a distribution day. The upward trend is still intact, but more high volume selling would be a big negative. Jerry