Leaders Index 11-29-21

It was an interesting week last week. The general weakness continued until Friday when news of a new variant came out and caused a big selloff in the shortened session. Today the market rebounded and recovered most of Friday’s decline. The Nasd averages regained all of the losses while the New York averages recovered most of them. After opening higher today the major averages worked their way higher most of the day and all closed at or near their intraday trading highs. The COMPQ and the NDX gained 1.88% and 2.32% respectively. The SPX was higher by 1.32%. Volume was higher across the board, as would be expected after a short session. It gained 16.15% on the New York and 27.57% on the Nasd. Leading stocks rallied as well. The leaders index gained 1.27% on the day and closed high in its trading range. It regained the 50dma that was lost on Friday. Volume was higher and just below average. The market was mostly disappointing last week and especially on Friday. The recovery today was good and helped the overall picture, but many negatives remain. There are reports that the new variant may not be as bad as feared last week, but there is a lot of uncertainty right now. Good news reports will cause a rally while any bad news will cause the market to sell off. Hopefully the new variant will not prove to be more dangerous than current ones and the rally can continue into year end. There are a lot of signs that we are in the very late stages of the current bull market. The cluster of Hindenburg Omen signals in the last two weeks is something to watch. Also the narrowing of the advance as fewer and fewer large cap stocks carrying the rally are signs of a late stage bull market. You never know how long an advance will continue and this one could go on longer than expected, but we are almost certainly late in the game. Jerry