Leaders Index 8-27-19

The action of the market over the last few days was overall negative. We have continued to have large moves based on news stories, mostly about trade. The down days continue to have higher volume than the up days. Today the major averages opened higher and produced early gains. They didn’t last as all the major averages made their highs in the first half hour. Prices reversed lower and all the major averages finished low in their intraday trading ranges, a negative sign. The declines were pretty evenly divided with the COMPQ and the NDX off by .34% and .12% respectively. The SPX lost .32%. Volume was higher across the board. It was up by 20.26% on the New York and 10.00% on the Nasd. This was enough to produce a new distribution day on the COMPQ and the SPX. Leading stocks were lower as well with the leaders index declining .75% on the day. It closed low in its trading range but held support at the short term 9dma. Volume was a lot higher and above average, so there was distribution in quality growth stocks as well. The action of the market continues to be negative overall. There was a negative reversal today on higher volume. The action of the market in the recent past has been dominated by news stories, particularly on trade and the Fed. The pattern continues to be selloffs in the major averages on high volume followed by weak rebounds on lower volume. This is not a healthy volume signature. The Nasd averages and the SPX have made three tries to get above their 50dma resistance levels since breaking below this moving average on 8/5. All have failed. The chart of the leaders index still looks pretty good as it is consolidating its recent up move above its short term 9dma. This is the only real bright spot right now. I guess the rally attempt that began with the follow through on 8/13 is still technically alive, but with the way the market is acting it is likely only a matter of time. Jerry