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View Full Version : Leaders Index 3-9-20



Jerry Samet
03-09-2020, 06:32 PM
The decline accelerated today into one of the worst single day declines ever. The coronavirus continues to spread and this weekend a price war between OPEC and Russia broke into the open and caused a crash in oil prices. These two items brought about a large decline in the market. The major averages opened significantly lower and after a mid-day rally attempt the major averages sold off into the close. All the major averages finished at or very near the bottom of their intraday trading ranges. The losses were pretty evenly divided with the COMPQ and the NDX falling 7.29% and 6.83% respectively. The SPX lost 7.60%. Volume was higher across the board. It was up by 16.10% on the Nasd and 38.19% on the New York. This is a large increase in volume. Leading stocks were hit hard as well with the leaders index falling 9.29% on the session. The index closed in the lower half of its trading range but held its 200dma. Volume was lower but well above average. The price drop in oil triggered a worldwide sell off in stock markets. We had a trading halt early today when prices on the SPX fell more than 7%. The market was unable to rally during the day and closed near its lows. All the major averages are now below their respective 200dma’s and are close to the official bear market designation of 20% down from the highs. There was also a historic collapse in yields as Treasury yields reached lows never before seen. There is a panic going on right now and it is hard to tell when it will end. The major averages took out the recent lows and thus the rally attempt off the lows on 2/28 is canceled and that attempt at a bottom has failed. It is unlikely that we have seen the end of this decline and the sidelines is the safest place to be. Jerry