Leaders Index 11-19-21

The market put in a mixed performance yesterday. An early selloff was followed by a rally, but late selling came in and all the major averages finished low in their intraday trading ranges. The Nasd averages were higher due to strength in the big cap tech stocks and the semiconductors. The COMPQ and the NDX gained .40% and .55% respectively. The SPX declined .14%. Volume was lower across the board, a good development when prices are mixed. It fell 10.64% on the Nasd and 3.74% on the New York. Leading stocks continued weak again yesterday with the leaders index declining 2.82% on the day. Volume was higher and well above average, showing distribution in quality growth stocks. Other ETF’s of leading growth stocks were also lower. The rally seems to be getting narrower as time goes on. The rally is being carried by a fewer and fewer number of large cap tech stocks. This is the type of action you see late in a bull market. There was also a Hindenburg Omen signal last week, another sign of late cycle action. Leading stocks are acting much worse in the last week or two as can be seen in the chart of the leaders index. It lost over half of the gains it saw since the follow through last week. This type of action is something to be concerned about. The positive seasonal period we are in would suggest that there should be more upside action into the end of the year, but there are more red flags appearing and that is cause to be more careful. I have family coming in to stay with me over Thanksgiving week and so there will be no updates next week. If I survive the updates will resume next Monday. I hope everyone has a good holiday. Jerry