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Thread: Leaders Index 1-24-20

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    Leaders Index 1-24-20

    The market took its first meaningful hit today in a long time. The major averages opened higher, but it was all downhill from there. They sold off pretty much into the close as fears of the coronavirus spreading increased. All the major averages finished near their intraday trading lows as there was little buying interest. The losses were evenly spread out with the COMPQ and the NDX losing .90% and .82% respectively. The SPX declined .90%. Volume was higher across the board. It increased 11.11% on the Nasd and 3.12% on the New York. This, combined with the price declines was enough to produce fresh distribution days on all the major averages. Leading stocks were lower as well. The leaders index was off by 1.14% on the day and closed low in its trading range. The index traded below its short term 9dma but closed above this short term support. Volume was higher and well above average. This was enough to produce distribution in quality growth stocks as well as the major averages. Today we saw the first strongly negative session in a long time. There have been few factors out there so far that would signal the end of the current intermediate term rally. That could possibly change now. The market today seems to have taken a serious look at what the spread of the coronavirus could do. If this gets out of control it could cause enough economic disruption to cause a real correction in the market, not just a short blip. This is the real concern now. If it remains contained the market will likely continue its march higher. If not we will likely see lower prices. The level of risk has increased and a more cautious stance is warranted. Jerry
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