Leaders Index 10-23-19

The market put in an overall quiet session today with a slightly positive bias. The major averages opened a little lower and bounced around unchanged until there was a little late buying. All the major averages closed at the top of their intraday trading ranges, a good sign. The New York averages were a little stronger, likely due to weakness in semiconductor stocks. The SPX was higher by .28% while the COMPQ and the NDX were higher by .19% each. Volume was a bit lower across the board. It declined by 5.40% on the New York and 4.53% on the Nasd. This is encouraging when a market is consolidating. Leading stocks were mixed. The leaders index was flat with a 0.0% move. It closed low in its trading range and tagged the important 17dma and remains below its short term 9dma. Volume was a bit lower and the relative strength line continues to weaken. It continues to be a tough market. Quality growth stocks are not acting well and many are breaking down badly. The weakening relative strength line of the leaders index shows these stocks are underperforming the overall market. This is usually not a good sign. There is some accumulation under the surface, but the market can’t seem to go anywhere. The major averages are within about two percent of their old highs. They must overcome this resistance with some volume behind them to have any chance of moving higher. The longer it takes the more likely that the market will resolve itself to the downside. Jerry