Leaders Index 5-22-19

The market opened lower today and was unable to rally. The major averages gapped lower and after a couple of rally attempts finished fairly weak. All the major averages closed low in their intraday trading ranges, showing little buying support as prices fell. The Nasd averages were a little weaker with the COMPQ and the NDX lower by .45% and .41% respectively. The SPX fell .28%. Volume was mixed. It was higher by 1.95% on the New York and lower by 3.16% on the Nasd, according to Esignal. Leading stocks did a little better than the overall market with the leaders index higher by .18% on the session. The index closed in the lower half of its trading range but did finish slightly above its 9dma. Volume was much lower and well below average. This and the increase in the relative strength line of the leaders index show that quality growth stocks outperformed a little. Overall the action of the market today was slightly negative. The declines were limited and leading stocks did better, but the market was not able to rally and closed low in its trading range. The most important factor right now remains the 50dma of the major averages and the leaders index. They are all below this important resistance level. For the market to make any progress from here they will all have to break above this important moving average with volume to back them up. The more time they spend trading below this level the more likely that the next move will be lower. I will be away for a few days. The updates will resume next week. Jerry