Leaders Index 2-20-20

The market had a wild ride today and closed lower. It was an interesting session that had some encouraging aspects to it. The major averages opened with some modest losses and then climbed into slightly positive territory. About an hour and a half into trading a big decline occurred quickly and took the major averages to significant losses. The major averages then bottomed out and rallied for the rest of the day. The Nasd averages were hit hardest with the COMPQ and the NDX losing .67% and .94% respectively. The SPX fell .38%. All the major averages closed in the upper half of their intraday trading ranges, showing some support. Volume was a lot higher across the board. It gained 13.90% on the New York and 12.38% on the Nasd. Leading stocks were lower along with the general market, but the action had positive aspects. The leaders index was off by .73% on the day, but it closed high in its trading range. It held all the short term moving average support levels. It even made a new intraday high before the selling came in. Volume was a lot higher, just the same as the overall market. The action today was strange. There was a short burst of selling with no real reason that I have heard. The major averages had significant losses but bottomed out and recovered much of the declines before the close. This shows some support. Today’s action produced new distribution days on all the major averages and the leaders index, but the closes high in the trading ranges mitigated much of the damage. If the market can rally tomorrow it may recover today’s losses. Right now the futures are lower. Tomorrows action will be important. A strong day will likely show the rally is ok, but the short decline today was a little worrisome. If the weakness continues in the next couple of days the picture could darken a bit. Jerry