The market had another negative session today as recent weakness continued. The major averages opened slightly lower and it was mostly down from there. All the major averages finished low in their intraday trading ranges, a sign of weakness. The Nasd averages were a little weaker with the COMPQ and the NDX falling .92% and .71% respectively. The SPX lost .68%. Volume was mixed. It was higher by 19.12% on the New York and lower by .42% on the Nasd. There was clear cut distribution on the New York averages. The volume on the Nasd was so close that other data feeds could have different results, but according to Esignal we just missed a distribution day on the Nasd averages. Leading stocks were hit pretty hard with the leaders index lower by 3.17%. The index closed in the lower half of its trading range and broke below its 17dma support level. Volume was higher and about average. This shows that there was distribution in leading stocks today. The damage to the market and the rally got worse today. We have had a second day of real selling and the charts are starting to look worse. The chart of the COMPQ is starting to look like there may be a double top forming. The leaders index broke the important 17dma on higher volume and a low intraday close. The relative strength line of the leaders index also broke below its 50dma, showing that leading stocks are underperforming the overall market, not usually a good sign for a rally. The overall distribution count is still low, but the yellow flags are flying. Jerry
I will be doing a presentation on "How I create my Leader's Index" for Molly's World this Saturday April 24 at 10 AM.
For more information please click https://drive.google.com/file/d/1mq2...ew?usp=sharing
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