Leaders Index 10-29-20

The market bounced today after yesterday’s selloff. The major averages opened a little lower and then rallied for most of the remainder of the session. A little late selling saw the major averages finish off their intraday trading highs, but still high in their trading ranges. The Nasd averages were a little stronger with the COMPQ and the NDX gaining 1.64% and 1.87% respectively. The SPX rallied 1.19%. Volume was lower across the board. It fell 2.36% on the New York and 19.08% on the Nasd. Leading stocks lagged today with the leaders index off by .41%. There was a mixed performance in the components of the index and it closed in the middle of its trading range. Volume was lower. The market rallied today, but it was not that impressive a move. The gains were nice but considerably less than yesterday’s losses. Volume was lower across the board. You want to see higher volume on a rebound. We didn’t get that today. There were several of the big tech companies reporting earnings after the close and the combined result is that the futures on the NDX are slightly lower. The major averages remain below their important 50 day moving averages. If they are to recover and move higher they must break above this resistance level with conviction. This is the key right now in determining is prices will move higher. Jerry