Leaders Index 1-31

The market had another overall weak day today. The major averages finished the session flat to down .26% on volume that was higher across the board. This produced distribution day’s on the SPX and NYA. The COMPQ had to small a loss to qualify as distribution. All the major averages closed near the lows of the day, but the 10dma is holding on all of them. Leading stocks did worse than the overall market as the leaders index fell .51% on volume that was less than yesterday’s but still well above average. The index traded the entire session under the 17dma and looks worse than at any time since the rally began. We have also had three of the last four trading days down on heavy volume. The pressure on the rally is building and it is probably wise to have a good deal of cash. Jerry