Leaders Index 10-16-20

The market today was almost a mirror image of yesterday’s action. Today the market opened stronger and after a little rally turned lower and sold off into the close. All the major averages finished close to their intraday trading lows. The Nasd averages were the weakest with the COMPQ and the NDX falling .36% and .39% respectively. The SPX was flat with a .01% gain. Volume was mixed. It was lower by 8.02% on the Nasd and higher by 25.56% on the New York. The Nasd averages avoided a distribution day because of the lower volume, but the SPX was hit with a stalling day because of the low positive close and the higher volume. Leading stocks were about flat on the session with the leaders index lower by .03%. The index closed in about the middle of its trading range on lower and very light volume. The market lost early gains today and closed weak. This is about the opposite of yesterday’s action. The action was weak but it doesn’t by itself change the overall picture. Leading stocks are still acting pretty well and the leaders index again held its short term 9dma. The kind of reversal we saw today is unsettling and must put position holders a little on edge. A couple of the shorter term indicators I watch, The Summation Index and the A’s minus E’s, are both still headed higher but their rate of advance has slowed. This is something to watch. The uptrend remains intact, but today’s action is a small negative. Jerry