Leaders Index 10-20-20

The market opened higher and spent most of the session working its way up. Late selling came in and while the major averages closed higher most of the gains were lost. All the major averages finished near their intraday trading lows, a sign of weakness. The COMPQ and the NDX were higher by .33% and .37% respectively. The SPX was higher by .47%. Volume was mixed. It was lower by 7.96% on the New York and higher by 1.96% on the Nasd. The close near the bottom of its trading range on higher volume had the feel of stalling on the Nasd averages. Leading stocks underperformed today with the leaders index about flat with a gain of .11%. The index closed low in its trading range on lower and very light volume. The market looked like it would have a good session today after yesterday’s weakness. Unfortunately late selling came in again and wiped out most of the gains. The major averages closed in positive territory but most of that was due to the small gap up at the open. The leaders index continued its sideways action by trading in a tight range on very low volume. The index again held its short term 9dma, which is encouraging. Two of the shorter term indicators I look at, the Summation Index and the A’s minus E’s have turned down The rally really isn’t acting the way you would want it to. There doesn’t seem to be a lot of strength in the rally attempt. The COMPQ recently had a follow through after teasing us a few times, but hasn’t done much since. The follow through on the COMPQ was not well confirmed. If the market can’t start posting some positive action pretty soon, the chances of a rally failure go up. Jerry