Leaders Index 5-16-23

The market mostly sold off today in a mixed session. The major averages opened lower on weak retail reports and then diverged a bit. The New York averages were lower all day and the SPX finished down .64%. The Nasd averages were stronger due to strength in tech stocks. The COMPQ closed lower by .18% while the NDX was higher by .09%. All the major averages closed low in their intraday trading ranges. Volume was higher across the board. This produced a new distribution day on the New York averages while the Nasd averages avoided distribution due to the small price decline or even advance. Leading stocks sold off as well with the leaders index falling .71% on the day. The index closed in the lower half of its trading range on higher and above average volume. The market was weak today, but some strength in big cap tech stocks led the Nasd averages to outperform. The market seems to be continuing its recent pattern of moving higher and lower in a trading range. Leading stocks are following a similar pattern as can be seen in the chart of the leaders index. It has gone sideways for several weeks and has done little since the follow through. The major averages have done pretty much the same. I still think that we will see mostly sideways action in the near term as the market continues a frustrating up and down pattern. I do think we will see a real move higher soon, but it doesn’t look like we are there yet. Jerry