Leaders Index 9-24-20

The market opened lower and then traded around the unchanged mark for most of the session. There was a slight positive bias with all the major averages finishing in the green. The COMPQ and the NDX were higher by .37% and .58% respectively. The SPX was higher by .30%. All the major averages closed in about the middle of their intraday trading ranges. Volume was higher. It gained 8.80% on the New York and was higher by just .41% on the Nasd. The Nasd number was close enough that different data feeds could have different results. Leading stocks were a bit weaker than the overall market. The leaders index fell 1.09% on the day, due to losses in a few components, such as a 7.1% decline in ZM. The index is below its short term moving averages and volume was higher and about average. This shows some distribution in quality growth stocks. The market action yesterday was disappointing. Today the market rallied, but the gains were not that impressive. They were much smaller than yesterday’s declines, but the higher volume was good. The major averages seem to have been turned back at their 50 day moving averages. The leaders index is also having trouble with its short term moving averages. The major averages must overcome their 50dma resistance levels, hopefully with volume. In addition it would be encouraging to see the leaders index move into new high ground in both the price and the relative strength line. If that can’t happen the market will likely continue lower. Jerry