Leaders Index 12-16

The market continued it's recent pattern of opening strong and spending the rest of the day giving back the bulk of those gains. This is not constructive market action. The major averages all closed near the lows of the day on very high volume. The volume gains were related to expiration. Leading stocks did better than the overall market with the leaders index rising 1.09%, also on heavy expiration related volume. This index continues to dance around it's 200dma, and if it continues to test this support level the ultimate result will likely be a break to the downside. The indecision of the recent trading range continues and until the market breaks clearly in one direction or the other taking positions will be dangerous. Jerry