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Thread: Leaders Index 10-21-20

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    Leaders Index 10-21-20

    It was another uninspiring session. The major averages opened higher and then spent most of the remainder of the day bouncing around the unchanged level before there was again late selling. All the major averages closed near the bottom of their intraday trading ranges. The COMPQ and the NDX were off by .26% and .12% respectively. The SPX declined .22%. Volume was mixed. It was lower by 2.29% on the Nasd and higher by 3.57% on the New York. This was enough for a distribution day on the SPX. Leading stocks were hit today with the leaders index falling 3.30% on the day. The index closed near the lows of the day and broke through the short term 9dma. It held its 17dma. Volume was slightly lower and very light. The market spent most of the day reacting to the latest report on the stimulus talks. Early strength lead to the major averages going back and forth around the zero line. Late selling came in again and the major averages closed near their lows again. The market can’t really seem to get a head of steam going. The follow through in the COMPQ has gone nowhere. Also look at ZM. This is THE stock of this rally attempt and the last powerful rally. It recently broke out of a high tight flag, one of the best chart patterns, and now is in danger of seeing that breakout fail. This would be worrisome. The market is still watching the stimulus talks and they will likely cause more volatility in the short term. Right now there are some clear lines in the sand to watch. The leaders index is sitting right on its important 17dma support level. Breaking this would show weakness in quality growth stocks. The COMPQ and the SPX have both pulled back to just above their respective 50dma’s. If they break this important support the weight of the evidence will point to the likely failure of the current rally attempt. Jerry
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