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View Full Version : Leaders Index 10-11-16



Jerry Samet
10-11-2016, 06:47 PM
The market really got pasted today. After opening lower the major averages continued to decline the entire day. The COMPQ was lower by 1.54% while the SPX lost 1.24%. The worst damage was in the semiconductors, the small and mid cap stocks with the SOX, the RUT and the MID falling 2.11%, 1.85% and 1.61% respectively. All the major averages closed near the bottom of their intraday trading range, showing little interest in buying stocks at lower prices. Volume was higher across the board, showing that large institutional players were selling stocks. This was also enough to produce new distribution days on all the major averages. Leading stocks were hit much harder than the overall market with the leaders index falling 2.51% on much heavier and about average volume. The index closed near the bottom of it’s intraday range and is below it’s important 17dma for the first time in weeks. After breaking into new high ground on a price and a relative strength basis yesterday on very light volume the index fell back much more today on higher volume. Not a good sign. The COMPQ pulled back to it’s 50dma while the New York averages fell further below this level. A lot of damage was done today and the rally is in real trouble if it isn’t already dead. The question is will there be a short correction that is reversed by central bank action as it has so many times in the last few years. We will have to see. Jerry