Leaders Index 11-9-21

The market sold off today for the first time in a while. The major averages opened slightly higher then sold off for about an hour and then bounced around until the close. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX declined .60% and .71% respectively. The SPX lost .35%. Volume was mixed. It was higher by 1.34% on the Nasd and lower by 8.65% on the New York. This combined with the price decline produced a new distribution day on the Nasd averages. Leading stocks sold off as well. The leaders index fell 1.27% on the day. The index held its short term 9dma and closed high in its trading range. Volume was higher and slightly above average. The market had its first real down day in a couple of weeks. Overall it was not such a bad thing. The markets have rallied hard in the last few days and were getting extended from their important moving averages. It is to be expected that they would consolidate or decline a bit to allow these moving averages to catch up. It seems to be doing that in a constructive fashion. There was a distribution day on the Nasd averages today but the overall count is still very low. This type of action is actually constructive as it allow the market to work off an extended situation. Down days aren’t fun when you are long, but they are healthy in an advance that is going to have real legs and produce worthwhile gains. Jerry