Leaders Index 7-24-20

The market continued its recent weakness yesterday. The major averages bounced around mostly in negative territory before closing with a little buying. All the major averages finished high in their intraday trading ranges, a sign of some support. The Nasd averages were again the weakest with the COMPQ and the NDX declining .94% and .92% respectively. The SPX fell .62%. Volume was lower across the board. It fell 13.35% on the New York and 4.09% on the Nasd. This shows that large institutional players were not heavy sellers yesterday and it avoided a fresh distribution day. Leading stocks were lower as well with the leaders index falling 1.37% on the session. The index also closed high in its trading range and volume was lower and well below average. The index closed below its important 17dma support level for the first time since the rally began. Yesterday saw a continuation of the recent weakness and more yellow flags are appearing. The weekly Coppock turned lower last week and gave a sell signal. The sell signals are not as reliable as the buy signals, but it is still a big caution flag. Many leading stocks are showing weakness as can be seen in the leaders index and the charts of many of the leading stocks individually. We avoided a distribution day yesterday and that is good, but it may have had something to do with it being a Friday in the summer when many market participants leave early for the weekend. It is too early to become really negative on the market, but the rally is under the most stress it had been under since it began. Taking some gains that have built up might not be a bad idea until we see if the market can recover from its recent weakness and resume its advance. Jerry