Leaders Index 11-8-16

After bouncing around unchanged early the market staged a rally and built up some decent gains. A little late weakness saw the major averages finish off their intraday trading highs but they all closed high in their trading ranges. The COMPQ closed with a gain of .53% while the SPX was higher by .38%. Volume was lower across the board, although the change on the New York was very small so the number on data feeds other than esignal could be a bit different. Leading stocks underperformed the overall market after beating it yesterday. The index ended the session .21% lower, but closed in the upper half of its trading range. The index traded above its 50dma during the session but couldn’t hold it. It also closed just below the 17dma. The relative strength line of the index tried to get back above its 50dma but was also turned back. The action of the last two days seems to have gone a good bit of the way in pricing in a Clinton victory. A Trump win would likely cause at least a short decline. The outcome of the election will clearly be the dominate factor in tomorrow’s action. The key at this point for both the leaders index and the major averages is the 50dma. They are all just a bit below this important moving average. If they can break above it with some conviction we could see higher prices, if not the market will likely head lower. Jerry