Leaders Index 11-30-20

The market had a mildly weaker session today. The major averages opened lower and went on to produce some real early losses. They found a bottom and rallied into the close. All the major averages finished high in their intraday trading ranges. The Nasd averages were the strongest with the COMPQ off by .06% and the NDX higher by .08%. The SPX lost .46%. Volume was much higher than Friday’s short session. It increased by 100.77% on the Nasd and 74.32% on the New York. This was enough to produce a distribution day on the New York averages, although the close high in the trading range mitigated much of the damage from the distribution. Leading stocks were generally lower with the leaders index off by 3.71% on the day. The index had several stocks lower but a couple of Chinese stocks sold off hard on movement in the House on legislation on accounting standards. The index closed in about the middle of
its trading range and held its short term 9dma. Volume was higher and a little above average. The market continues to work its way higher. It looked like today would be a very negative session until to market rallied and recovered most of the losses. The month of November was very strong and most major averages made new highs. Vaccine news and prospects of a divided government supported the market. There are indicators that show that the market is stretched, such as the high jump, the percent of stocks above their 200dma’s and the Investors Intelligence numbers. These show that the market has come a long way but do not give precise sell signals. Markets can get more stretched. Right now markets are floating on a sea of liquidity created by central banks around the world. We are in a seasonally positive period and the market will likely move higher, but we are a lot closer to the end of the move than the beginning. Jerry