Leaders Index 9-3-19

After a strong rally last week on trade optimism a lot of the air was let out of that balloon as the trade talk turned negative with new tariffs taking effect over the weekend. There was also some weaker than expected manufacturing data. The major averages gapped lower at the open, but bottomed out early and there was some rally off the lows, particularly on the New York averages. The Nasd averages were the weakest with the COMPQ and the NDX declining 1.11% and 1.06% respectively. The SPX was off by .69%. The Nasd averages closed low in their intraday trading ranges while the New York averages finished just above the midpoint of their trading ranges. Volume was higher across the board, gaining 19.67% on the Nasd and 19.45% on the New York. It was an easy comparison due to Friday being the session before a long holiday weekend, but it was still high volume. This was enough to produce a new distribution day on all the major averages. Leading stocks sold off as well with the leaders index falling .96% on the day and closing low in its trading range. Volume was higher and above average, so there was a lot of selling pressure in quality growth stocks. The index also fell below its important 17dma. The market continues to gyrate back and forth based on news stories, mostly related to trade. This makes it very difficult to make any progress in either direction. The major averages continue to attempt to get above the important 50dma resistance level and have been turned back several times. The leaders index has also broken below its 17dma support level. It also did this on heavy volume. The distribution count is getting pretty high, also a negative. Unless you are a skilled very short term trader you will have a tough time in this environment. Jerry