Leaders Index 12-17-21

The market took another hit yesterday, although it was the New York averages that took the brunt of it. The New York averages finished low in their intraday trading ranges while the Nasd averages closed in about the middle of their trading ranges. The COMPQ and the NDX fell .07% and .39% respectively. The SPX declined 1.03%. Volume was higher across the board. It gained 4.46% on the New York and 9.39% on the Nasd. This produced another distribution day on the SPX. The decline in the COMPQ was too small to qualify as distribution. Leading stocks sold off as well with the leaders index falling 1.44% on the session. The index closed in about the middle of its trading range on very heavy volume. This showed distribution in quality growth stocks, although the index did hold its short term 9dma. The action of the market was poor again yesterday. The Nasd averages held up better, but there was another distribution day on the New York averages. Distribution this close to a follow through usually means that it will fail quickly, and that is what appears to be happening. IBD went to an uptrend under pressure call just two days after the follow through and any attractive looking stocks at the time look like they are breaking down. It shouldn’t be long before this follow through officially fails and the market resumes its corrective action. This is actually good as it could allow the market to correct enough to form the basis of a solid rally. For now I would say take the holiday off as there doesn’t seem to be much to do right now. Playing around in this kind of situation is usually a good way to lose money. Jerry