Leaders Index 8-9-19

The market put in an overall negative performance yesterday. The major averages sold off pretty hard early but about two and a half hours into trading they bottomed and started to rally. They were able to recover almost half their losses. The Nasd averages were the weakest with the COMPQ and the NDX losing 1.00% and 1.02% respectively. The SPX declined .66%. The Nasd averages finished just below the midpoint of their intraday trading ranges while the SPX closed just above this level. Volume was lower across the board, a good sign when prices fall. Leading stocks were weaker as well with the leaders index declining .83%. The index closed low in its trading range and volume was lower and well below average. The action of the market yesterday was overall negative. The major averages were not able to hold above their respective 50dma’s after regaining them on Thursday. This important moving average will likely provide some real resistance. The positive yesterday was the lower volume, but it was a Friday in August and many market participants leave early. This pattern will likely persist until after the Labor Day weekend. The real key from here is the 50dma. The major averages must overcome this resistance with some real conviction or the rally attempt will likely fail and we will see lower prices ahead. Jerry