Leaders Index 9-8-20

The market got slammed again today as the recent sell off deepened. The major averages opened lower and after a couple of weak rally attempts failed they sold off into the close. All the major averages finished at or very near their intraday trading lows as selling continued to the end of trading. The Nasd averages were the weakest again as the tech stocks continued to weaken. The COMPQ and the NDX fell 4.11% and 4.77% respectively. The SPX declined 2.78%. Semiconductor stocks were particularly weak with the SOX selling off 4.71%. Volume was mixed. It fell 10.92% on the Nasd and rose 4.59% on the New York. This was enough to produce a new distribution day on the New York averages. Leading stocks were hit hard as well with the leaders index fell 6.58% on the day. The index closed low in its trading range but held above its 50dma. Volume was lower but well above average. The selling continued in a big way today as the damage keeps getting bigger. The COMPQ is now down just over 10% from its highs in just three trading days. It also closed below its 50dma for the first time since early in the rally. When a correction goes past 8% the chances of a full blown intermediate correction of 12% or more increases dramatically. The COMPQ has now done that. The SPX is about 7% down from its highs and so is very close. The COMPQ breaking below its 50dmais very negative. The fact that the SOX did the same thing is also troubling. Real damage has been done to both the major averages and leading stocks. The odds are that the rally that started in late March is over. The action of the last three days has done to much damage. Jerry