Leaders Index 9-21-18

The market put in another overall disappointing session today. The Nasd averages were hit again with the COMPQ and the NDX declining .51% and .50% respectively. The New York averages look better as the SPX was lower by only .04%. This shows a real divergence between the Nasd and the New York averages. All the major averages finished at their intraday trading lows, a negative sign. Volume was higher across the board, due to this being an expiration day. This still qualifies as a distribution day on the Nasd averages. Leading stocks had another bad session today with the leaders index declining another .20%. The index closed near the bottom of its trading range and it is now declining below its short term 9dma. Volume on the leaders index was very high, but again much of this was due to the expiration factors, but it still counts as distribution in quality growth stocks. The market is looking more shaky right now. Leading stocks continue to sell off and are showing real weakness right now. The 9dma and 17dma of the leaders index are both headed lower and the relative strength line is close to breaking above its 50dma. Major averages are acting better but there is still a bit of a divergence between the New York and the Nasd averages, with the latter acting much worse. One of the best things that the rally had going for it was that quality growth stocks were acting better than the overall market. That has now changed. The risk in this market has increased considerably. To make things a little more complicated two of the shorter term indicators I look at and have worked well lately are close to turning positive. The Summation Index and the A’s minus E’s are close to turning. They haven’t yet and still may not, but they must be watched closely. Jerry