Leaders Index 7-20-20

The market had an encouraging session today. There was a little weakness in the first few minutes but the major averages quickly found a bottom and rallied for the remainder of the session. All the major averages finished at or very near their intraday trading highs. The strength today was in the Nasd averages with the COMPQ and the NDX gaining 2.51% and 2.88% respectively. The SPX was higher by .84%. Volume was very close to Friday’s levels. It was higher by 1.85% on the New York and lower by .14% on the Nasd. The Nasd numbers are so close that different data sources could have different numbers than Esignal. Leading stocks were generally strong also with the leaders index higher by 2.56% The index closed high in the trading range and volume was lower and below average. The action of the market was overall positive today with the Nasd averages making new highs on a closing basis, but not an intraday one. It was still below the high of last Monday before the reversal. The leaders index is right at its old high as leading stocks were strong overall today. The large cap tech stocks and the semiconductor stocks were strong and this led to the outperformance in the Nasd averages. There are a couple of issues out there that must be watched. The Nasd averages are very extended from their important moving averages as can be seen in the high jump indicator. Also the weekly Coppock is starting to flatten out this week. It is just Monday so we will have to see what it looks like at the end of the week, but if the weekly Coppock rolls over it will be a big negative. The sell signals are not as good as the buy signals, but they are still important. We have to keep an eye on these items, but overall the rally still looks ok. Jerry