Leaders Index 10-6-15

The market traded mostly lower today and the major averages finished with modest losses. The COMPQ lost .69% and closed in about the middle of it’s intraday range while the SPX fell .36% and ended near it’s intraday lows. Volume was mixed, higher on the Nasd and slightly lower on the New york. This produced a distribution day on the Nasd averages. A distribution day this early after a follow through is a negative sign. Leading stocks did worse than the overall market with the leaders index dropping 1.05% on the day. Volume was less than yesterday but still above average. The index closed in the lower half of it’s intraday range. After two big rally days you would expect a pullback, and this one looked pretty orderly. The higher volume on the Nasd is a worrisome sign as you do not want to see distribution this early after a follow through. The declining 50dma remains the major hurdle for the major averages. If they can’t clear this important moving average there is little chance of this rally attempt going anywhere. Jerry