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Thread: Leaders Index 9-4-20

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    Leaders Index 9-4-20

    The action of the market was disappointing yesterday. After a big sell off you want to look at the quality of the bounce to see if the worst is over. We got no bounce yesterday. The major averages opened mixed and then sold off hard. There was a rally before the close but all the major averages closed in negative territory. The Nasd averages were again the weakest with the COMPQ and the NDX losing 1.27% each. The SPX fell .81%. All the major averages finished in the upper half of their intraday trading ranges, thanks to the late rally. Volume was lower across the board, so there was no distribution. It fell 9.78% on the New York and 2.99% on the Nasd. Leading stocks sold off again as well with the leaders index losing 1.96% on the session. The index closed in the upper half of its trading range and volume was much higher and well above average. This showed distribution in quality growth stocks. About the only good thing you can say about yesterday’s action is that the market closed well off its lows and volume declined. Overall the action was not encouraging. The market couldn’t generate any kind of a bounce after a strong sell off. This is not what you want to see. There has been a lot of damage done in the last two trading days, and yesterday the market showed few signs of a bottom. All the major averages traded down to their respective 50dma’s and bounced off them, which is good. The lack of a bounce yesterday was very disturbing. Right now the rally is in the biggest trouble it has been in since it began in late March. We must see a good rally back on good volume or we may have seen the highs of this rally. Jerry
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