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Thread: Leaders Index 10-3-18

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    Leaders Index 10-3-18

    The market opened strong today in what looked like it would be a very positive session. The major averages opened with solid gains and leading stocks rallied along with them. The market closed with gains as the Nasd averages were the best performing with the COMPQ and the NDX higher by .32% and .12% respectively. The SPX was pretty much flat with a gain of .07%. The market couldn’t hold the bulk of the gains as late selling came in and wiped out most of the early gains. All the major averages finished at or very near their intraday trading lows. Volume was higher across the board, just what you want to see as prices moved higher, but the late weakness took the shine off it. Leading stocks followed the same pattern as the overall market. The leaders index was higher by .28% on the day and closed just above the midpoint of its trading range. The index again tagged the 50dma before closing above this important support level. Volume was higher on the session, showing slightly better action in quality growth stocks than in the major averages. It looked like it would be a positive session today, but late selling darkened the picture. A market that opens higher but sells off late is not exhibiting positive action. It is the signature of a weakening market. Leading stocks were generally higher but much of the early gains were lost. The leaders index is dancing with its 50dma support level. This is a critical level for top quality stocks as real leaders are considered broken when they are trading below the 50dma. The index now has the 50dma as support and the shorter term 9dma and 17dma just above it as resistance. The direction that the index breaks in will tell us which way the overall market is likely to go. Jerry
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