Leaders Index 11/20/18

[Jerry Samet]

The market got hit again today. The major averages opened lower and after a weak attempt to rally during the day sold off again. All the major averages finished in the lower half of their intraday trading ranges, with the Nasd averages doing a little better. The COMPQ and the NDX were off by 1.70% and 1.75% respectively. The SPX was a little weaker with a decline of 1.82%. Volume was higher across the board as large institutional players sold stocks heavily. This was enough to produce distribution on all the major averages. Leading stocks sold off as well with the leaders index falling 2.05% on the day and losing in the lower half of its trading range. Volume was higher and above average, showing distribution in leading growth stocks. The index also closed right on its 50dma. The selling continued today with serious weakness in both the major averages and the leaders index. The Nasd averages traded and closed below the lows of the rally day, putting the final nail in the coffin of this rally attempt. The leaders index also breached its 50dma on volume, the last line in the sand for leading socks. The follow through failed badly and the actual day of the follow through was the high, and it sold off ever since. The question now is how low do we go. All the charts look terrible and virtually no stocks produced worthwhile gains. The IBD 50 has now spent almost six weeks below its 200dma and is very close to a death cross. There is nothing looking good right now. The only thing I can think of that might create even a small rally would be good news on trade with China out of the G20 meeting next week.
There is now reason to be holding long positions right now. Jerry