Leaders Index 7-25-19

The market sold off today with solid losses. The major averages opened lower and spent the rest of the session working their way lower. All the major averages finished at or very near their intraday trading lows, not an encouraging sign. The Nasd averages were the weakest with the COMPQ and the NDX declining 1.00% and 1.01% respectively. The SPX fell .53%. Volume was higher across the board. It rose by 6.25% on the Nasd and 7.89% on the New York. This increase in volume, combined with the price declines in the major averages was enough to cause new distribution days on all the major averages. Leading stocks were lower as well. The leaders index was off by .80% and closed low in its trading range. Volume was much higher and well above average. This produced distribution in quality growth stocks. Much of this decline was caused by a decline of 11.38% on huge volume in TAL. This, along with a 6.41% fall in NMIH, accounted for the decline in the leaders index and its heavy volume. The relative strength line of the leaders index continued to weaken and is just above its 50dma. The action of the market today was negative as the market was under selling pressure all day. The decline was meaningful and the higher volume showed that large institutional players were selling stocks. Quality growth stocks are lagging the overall market but the chart of the leaders index still looks ok. It has been consolidating lately, but considering that several components of the index have been hit hard it is holding up pretty well. The charts of the major average also show littler real damage. The preponderance of the evidence still points to higher prices ahead, at least in the short term. Jerry