Leaders Index 7-31-15

The market tried to rally early but couldn’t hold the gains. The Nasd averages in particular had solid gains in the first half of trading but sold off into the close. All the major averages ended lower with the New York averages the weakest. The SPX lost .23% on the session while the COMPQ was about flat with a decline of only .01%. All the major averages closed at their intraday lows, a sign of little support. Volume was mixed, higher on the New York and lower on the Nasd. This produced a fresh distribution day on the New York Averages. The small and mid cap stocks did a little better with the RUT up by .54% and the MID gaining .17%. This is in contrast to the semiconductor stocks as the SOX fell 1.20%. This continues the pattern of the COMPQ and the NDX being held up by a small number of mostly big cap tech stocks while the SOX is very weak. Leading stocks had a better session than the overall market with the leaders index gaining 1.47% on volume that was lower than Thursday but still well above average. The index has shown pretty solid gains in the last two or three sessions and is now back above all it’s short term moving averages. The relative strength line of the index is back in new high ground while the price of the index is close. Despite this it is still difficult to make much progress in this environment. Few stocks are producing worthwhile gains and risks remain high. Positions should be chosen carefully as small gains can quickly turn into losses. Jerry