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View Full Version : Leaders Index 4-6-20



Jerry Samet
04-06-2020, 06:32 PM
The market staged a powerful rally today. There was news of a slowdown in the rate of increase of both new cases and deaths, along with talk of more stimulus. The major averages gapped higher at the open and rallied for pretty much the whole session. Some late buying saw all the major averages finish at or very near their intraday trading highs, a sign of support. The gains were strong with the COMPQ and NDX gaining 7.33% and 7.35% respectively. The SPX was higher by 7.03%. Volume was higher across the board. It gained 15.57% on the Nasd and 6.45% on the New York. His shows that large institutional players were buying stocks today. Leading stocks rallied as well with the leaders index gaining 9.10% on the day. The index closed high in its trading range on higher and about average volume. The rally today was strong and had about everything you look for in a rally. It is typical of a strong rally day in a bear market, but we know we are in a bear market. The question right now is if this countertrend rally attempt that is currently underway will turn into something worthwhile. The action today certainly improved the picture. The major averages are now above their recent highs of the rally attempt. It looked like they were rolling over after being turned back at their respective 20dma’s. They are above this moving average now and also above the highs of the rally attempt. This means the rally attempt is intact. Today’s action amounted to a follow through on the Nasd averages and reinforces the positive outlook. There was no Eureka signal today but we must watch the weekly Coppock. It is still headed down but if the week closes the week at today’s level the rate of decline will slow. If it turns this week or next it would be encouraging. Jerry