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Thread: Leaders Index 10-6-20

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    Leaders Index 10-6-20

    The market took a bit of a hit today. After opening a bit lower the major averages bounced around before making a run for higher prices. Just over an hour before the close a tweet came out that threw cold water on stimulus talks. The market sold off into the close and produced some decent losses. All the major averages finished at or very near their intraday trading lows. The COMPQ and the NDX fell 1.57% and 1.89% respectively. The SPX lost 1.40%. Volume really took off today. It climbed 22.28% on the Nasd and 24.78% on the New York. This showed that large institutional players were selling today and produced distribution on all the major averages. Leading stocks were weaker as well with the leaders index falling 2.12% on the day. The index closed in the lower half of its trading range but held above its short term 9dma. Volume was higher, showing selling pressure in quality growth stocks. The market was acting pretty well overall until it got hit by the news on the stimulus talks. The major averages were making intraday highs and were rallying until the news came out. This is the first distribution day since the Dow inspired follow through, and it did come more than three days after the follow through. The SPX and the NDX are back below their 50 day moving averages while the COMPQ held this important moving average. The market was acting fairly well before today. I was never very comfortable with the recent follow through call but the major averages were holding up ok if not producing the kind of gains you like to see after a good follow through. Today the market got hit on a news announcement. This could be a negotiating tactic and any encouraging news could reverse today’s losses. You never know in this environment. The action of the market tomorrow will be instructive. If there is a solid bounce back then today’s decline may just be a one day wonder. If not and there is more selling and distribution the new rally attempt may be in danger. Jerry
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