Leaders Index 12-11-20

The market opened lower yesterday and was in negative territory for about half the session. The major averages then found a bottom and rallied into the close. They never made it into positive territory but much of the early losses were recovered and they all closed high in their intraday trading ranges. The declines were due to the small gap down at the open. The Nasd averages were a little weaker with the COMPQ and the NDX declining .23% and .21% respectively. The SPX lost only .13%. Volume was lower across the board. It fell 4.54% on the Nasd and 5.69% on the New York. Leading stocks were generally weaker as well with the leaders index losing 3.02% on the day with several components, like NIO and CRSR taking decent sized hits. The index is now constrained on the upside by its declining 9dma and the chart is showing lower highs. Volume was higher but below average. The market continued to show a generally positive pattern as early losses were mostly recovered and the major averages finishing high in their trading ranges. A concern now is that leading stocks continue to underperform the overall market. The leaders index is building a negative chart as the index can’t rally back above its short term moving averages. The IBD 50 is also lagging as it never made a new high when the major averages did and it is sitting just above its 50dma. There are still stocks breaking out, but many of the early leaders seem to be losing steam. The overall picture still seems to point to higher prices in the near term for the major averages, but it would be a lot more encouraging if leading stocks were to start doing better. Jerry