Leaders Index 12-8-14

It was a pretty ugly session today. About all you can say that was good is that the market closed off it’s lows. The major averages sold off from the open and all closed in the lower half of their intraday ranges. The COMPQ led the way lower with a decline of .84% while the SPY was off by .73%. Volume was higher across the board so there was clear cut distribution on all the major averages. The COMPQ and the SPY were both holding their 10dma’s but fell below this short term moving average today. Leading stocks were hit pretty hard today with many quality growth stocks taking serious hits. The leaders index actually held up fairly well with a decline of .36% on the day, doing better than the overall market. Volume was higher, but below average, so there was distribution here as well. The index continues to be stuck in it’s recent trading range and virtually no progress has been made in weeks. There has not been a lot of damage in the charts of either the major averages or the leaders index, but the market is clearly struggling. Few stocks have produced worth while gains and making progress has been very difficult. This is typical late cycle action in which market participants go more for the big cap defensive names. There was also another Hindenburg Omen signal today, making five in the last six trading sessions. It is impossible to know when this thing will actually end, especially in a global QE environment, but it should be kept in mind that we are likely very late in the game and some caution should be exercised. Jerry