Leaders Index 11-20-19

The market sold off today on news. After opening a little lower the major averages held pretty steady until a report came out saying that the first round of a trade deal with China might not happen until next year. The major averages immediately began selling off. They bottomed out fairly quickly and then recovered much of the decline. The Nasd averages were a little weaker with the COMPQ and the NDX declining .51% and .66% respectively. The SPX fell .38%. All the major averages finished trading in the upper half of their intraday trading ranges, a sign of support. Volume was higher across the board. It climbed 15.26% on the Nasd and 6.12% on the New York. This combined with the price declines was enough to produce a fresh distribution day on all the major averages. Leading stocks sold off as well with the leaders index falling 1.20% on the session. This shows some selling in quality growth stocks occurred, but after nine up days in a row for the leaders index it is not unexpected. The index closed just below the midpoint of its trading range and volume was higher and slightly above average. The index also tagged its short term 9dma at its lows. This showed distribution in leading stocks as well as the major averages. The market got hit today on a news story. We have seen a lot of this in the recent past and it will likely continue. A positive story tomorrow would likely see the market regain these losses. The higher volume on a decline is not good, but the fact that the market recovered much of the losses and the major averages closed in the upper half of their trading ranges shows support. Today was a weak session, but I don’t think much in the way of real damage was done and the yearend rally scenario seems to remain intact. Jerry