Leaders Index 11-20-25

There is nothing good to say about today’s action. After a strong start the major averages reversed lower and sold off the remainder of the session. All the major averages finished near the bottom of their intraday trading ranges. The COMPQ and the NDX fell 2.15% and 2.38% respectively. The SPX lost 1.56%. Volume was higher across the board, showing that large institutional players were selling stocks today. Leading stocks were hit hard as well. The leaders index fell 5.18% on the day. The index closed low in its trading range on higher and above average volume. You couldn’t have worked up a worse scenario for today if you tried. NVDA came in with a great report and rallied overnight and into the open. After rallying hard early and recovering their 50dma’s, the major averages reversed lower and sold off hard on the day. This is very negative. NVDA ended the day with large losses after early strong gains. This is the market reacting poorly to good news, not indicative of a strong market. The NASD averages are now down more than eight percent from their recent highs. This is the line that separates minor corrections from larger ones. We are now looking at an intermediate correction of as yet unknown magnitude, or possibly worse. The rally that began last April is over, we now have to see how deep the correction will be and be alert for signs of the next rally. Jerry