Leaders Index 7-3-18

The market opened strong today in what looked like a continuation of yesterday’s late strength. It didn’t last long as the major averages soon topped out and began to sell off. The selling lasted into the close with all the major averages finishing at their intraday trading lows. The COMPQ was lower by .86% and the SPX declining .49%. Volume was low as you would expect with the early close. Leading stocks were a bit higher with the leaders index gaining .21% on the session and closing in about the middle of its trading range. Volume was also lower, but not too bad for a half day. The action of the market today was not encouraging. There was a solid rally early, but it didn’t hold. The market topped out early as sold off consistently into the close. This continues the recent pattern of strong opens and weak closes, which is not a bullish pattern. The Nasd averages are holding above their 50dma’s but the New York averages are a lot weaker. The SPX is back below its 50dma while the NYA and the INDU are both below their 200dma’s. The chart of the leaders index look a little better as the index bounced off its 50dma and is trying to build the right side of a basing pattern, although on lite volume. Overall it is not a time to get to aggressive and a good sized cash position is called for. Jerry