Leaders Index 11-7-16

The market rallied strongly today after Comey said last night that the FBI would not recommend charges in the email matter against Clinton. The futures rallied last night and it continued into the opening today. The COMPQ gained 2.37% while the SPX was higher by 2.22%. The strength was across the board as the small and mid cap stocks, as well as the semiconductors matched the gains in the major averages. All the major averages finished the session at their intraday trading highs, a sign of support. There was little selling as prices rose. Volume was the problem. It was lower across the board. This shows that large institutional players were not buying heavily today. This is easy to understand with the election tomorrow. Leading stocks were strong today as well with the leaders index rallying 3.20% on the day. It also closed high in its trading range and volume was higher than Friday and slightly above average. This index tagged it’s 50dma at its highs but couldn’t break above it. That is now the major resistance the index faces. It must get above the 50dma, hopefully with some conviction, to keep moving higher. The New York averages bounced off their 200dma’s and the NYA reclaimed this level. The Nasd averages are still a ways under their 50dma’s. With the election tomorrow and the result in question the next couple of days are anybody’s guess. The market seemed to be pricing in a Clinton victory tomorrow, so a Trump win would likely result in a sell off, at least in the short term. The gain today was nice, but we will have to wait and see if it was just an oversold bounce or the beginning of something more. Jerry