Leaders Index 5-29-19

The market put in another negative session today. After opening lower the major averages worked their way lower for most of the rest of the session. Some late buying came in and lifted the major averages above their lows. All the major averages closes in the upper half of their intraday trading ranges. This is encouraging, but it was about the only positive development in today’s action. Everything finished with meaningful losses. The COMPQ and the NDX fell .79% and .85% respectively. The SPX lost .69%. Volume was higher across the board, according to Esignal. Leading stocks were hit as well with the leaders index falling 1.92%. The index closed near the bottom of its trading range and below all its short term moving averages. Volume was lower but still well above average. The market’s weak action continued today. There were several news stories that may have effected prices, but all the major averages made new lows for the correction today. The COMPQ and the SPX both broke below their long term 200dma’s before closing slightly above these important support levels. The leaders index has now been trading below its 50dma for over two weeks. So has its relative strength line. Having the major averages hold above their 200dma’s will be important and there could well be a bounce after the strong selling of the last few days, it looks like there will be lower prices ahead. Jerry