Leaders Index 7-23-15

The market opened generally higher today. Most of the strength was again in the Nasd averages while the New York averages were up only slightly. The gains didn’t last as about an hour and a half into trading all the major averages started selling off and continued lower throughout the session. All the major averages closed at their intraday lows. The COMPQ was off by .49% while the SPX fell .57%. Volume was mixed, higher on the New York and lower on the Nasd. This produced distribution days on the New York averages. Leading stocks were lower on the session as well with the leaders index falling .77% on the session. The index finished just above it’s short term 9dma. and in the lower half of it’s intraday trading range. Volume was lower on the day, continuing the pattern of low volume during the recent consolidation. The chart of the leaders index is still acting well. The consolidation after the recent advance has been orderly and the fact that the index is holding above it’s moving averages while the major averages are selling off is constructive. The weakness in the major averages is worrisome. We had a reversal today in the major averages, particularly the Nasd averages, that usually produces lower prices. After the close today there were some good earnings reports, particularly in AMZN and SBUX. The markets are higher in after hours trading, if they open higher and can’t hold the gains it will be a negative sign. Jerry