Leaders Index 4-1-20

The market sold off pretty hard today. The major averages gapped lower at the open and spent the rest of the session working their way down. All the major averages closed low in their intraday trading ranges, showing a lack of support as prices fell. The COMPQ and the NDX lost 4.41% and 4.11% respectively. The SPX declined 4.41%. Volume was lower across the board. It fell a small 1.59% on the New York and 4.49% on the Nasd. Leading stocks sold off as well with the leaders index declining 4.57% on the day. The index closed low in its trading range on lower and about average volume. The market resumed its decline today as all the major averages and the leaders index fell hard. The rally attempt is still technically in effect until the major averages take out recent lows. It’s too early to say that the recent rally has run its course, but if you look at the charts of the major averages today’s decline looks pretty bad. We may have seen the end of the first rally attempt of this bear market and if that is true then the second down leg of the bear market should start soon. We will have to see how this plays out, but I don’t think we have seen the lows of the bear market yet. Jerry