Leaders Index 3-26-15

The market opened weaker today after the futures showed significant. losses. All the major averages had real declines and it looked like the market was in real trouble. The major averages made their intraday lows after about an hour and spent the rest of the day struggling to go higher. There was a reversal and after making it into positive territory they lost some ground near the close and finished in the red. The SPX fell .24% while the COMPQ declined .27%. The New York averages all remained below their critical 50dma’s while the Nasd averages are slightly above theirs. Volume was mixed. Higher on the New York and lower on the Nasd. This produced a distribution day for the SPX. There are now seven distribution days on both the major averages. Leading stocks had big losses early but many rallied back and closed mixed on the day. The leaders index was flat with a loss of only .07%. The index came close to it’s 50dma but held it. There is a green candle because it closed above it’s opening price. After yesterday’s big decline the quality of the bounce is important. Even though the major averages and leading stocks closed well off their lows the day’s action left a lot to be desired. We must see a good advance quickly and with real conviction or the rally is likely dead. Jerry