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View Full Version : Leaders Index 9-21-20



Jerry Samet
09-21-2020, 06:35 PM
The market started out very weak following selling in foreign markets. There were a couple of news stories that weighted on the market. There were a large number of questionable transactions that involved some major banks. Likely more important it looks like there will be more lockdowns as the coronavirus cases increase quite a bit in Europe. This seems to coincide with the summer vacation season in Europe. The major averages sold off at the open and produced sizable losses. They remained lower until late buying came in and caused a rally into the close. All the major averages finished at or very near their intraday trading highs. The Nasd averages were the strongest as the COMPQ fell only .13%. The NDX actually got back into positive territory with a gain of .40%. The New York averages were hit hardest with the SPX falling 1.16%. Volume was lower across the board, but this is in comparison to the expiration volume on Friday. It was still very high, but distribution was avoided. Leading stocks did better than the overall market. The leaders index was higher by 1.99% and closed near the top of its trading range. The index regained its 17dma and volume was lower than Friday’s expiration day, but it is still well above average. The market may have put in something of a short term reversal today. The early weakness was largely erased by late strength in what looks like a positive reversal. This type of trading can mean a short term change in direction. I would not be surprised to see the Nasd averages particularly, but the New York averages as well, try to rally back up to their respective 50 day moving averages. How they trade at this level if they reach it will tell us a lot. Some encouraging action can be seen in the leading stocks. The leaders index regained its important 17dma level on heavy volume. Also the relative strength line of the leaders index is almost back to its old high at the beginning of September. A break of the old high would be encouraging. Today’s action may produce some short term gains, but it likely isn’t enough to change the overall picture. I don’t think we have seen the bottom of this correction yet. Jerry