The market actually put in a pretty impressive performance today. The major averages opened lower after losses in Europe when a new strain of the Corona virus was found in the UK. There were sizable losses early, but the major averages found a bottom after about an hour of trading and started to rally. The rally continued into the close and most of the early losses were recovered and all the major averages closed at or very near the top of their intraday trading ranges. The COMPQ and the NDX fell .10% and .38% respectively. The SPX declined .39%. Volume was lower across the board. It fell 6.51% on the New York and 3.59% on the Nasd. This avoided any new distribution on any of the major averages. Leading stocks did better than the overall market. The leaders index was higher by 2.62% on the session. The index closed high in its trading range on lower and below average volume. The market acted well today overall. There were early losses on bad news on a new strain of the Corona virus. There was good news however over the weekend as the FDA approved a second vaccine. The reversal and rally into the close showed that there is a bid under the market. Buying came in even in the face of bad news and stocks recovered. This is encouraging. Leading stocks are acting better as the leaders index is back above its short term moving averages and is approaching its old highs. There is a clear cup pattern in the chart. A break into new high ground would be very positive. The reversal in the market even in the face of worrisome news is encouraging. The market looks like it wants to go higher and will likely work its way higher into year end. Jerry
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