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Thread: Leaders Index 10-28-20

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    Leaders Index 10-28-20

    It was an ugly day all around. Fear of a second wave of the Coronavirus in Europe and the U. S. caused strong selling from the start. The major averages opened lower and worked their way down for the remainder of the session. Late selling saw all the major averages finish at or very near their intraday trading lows, showing real weakness. The losses were pretty evenly divided with the COMPQ and the NDX off by 3.73% and 3.98% respectively. The SPX lost 3.53%. These are real losses. Volume was much higher across the board. It climbed 24.33% on the New York and 28.08% on the Nasd. This shows that large institutional players were selling stocks heavily today and is a new distribution day on all the major averages. Leading stocks were lower as well, but not by as much. The leaders index declined 1.56% on the day. It bounced off its 50dma but held it and finished in the middle of its trading range. Volume was lower than yesterday but high by recent standards. The market really got clobbered today. Fears of a second wave caused heavy selling and the major averages broke important support. All are now below their 50dma now resistance levels and have broken this former support on heavy volume. Leading stocks are acting a little better as the leaders index is holding above its 50dma, but it doesn’t look particularly good. The index is now above its 50dma and below its 17dma. We should Watch to see which of these moving averages will be broken. The major averages broke below their 50 day moving averages on heavy volume, a very negative development. It is clear that even the follow through call in the Dow has failed, along with the previous failure of the follow through on the COMPQ. Its time to be primarily concerned with preserving capital. Jerry
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