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View Full Version : Leaders Index 12-3-19



Jerry Samet
12-03-2019, 06:24 PM
The market took a pretty wild ride today. The major averages gapped lower on the open after news comments saying there may not be a China trade deal until after the election. The major averages made bottoms in the first half hour of trading and went into a steady rally from there. They regained much of the early losses and all the major averages finished at their intraday trading highs, a sign of support. The declines were pretty evenly divided with the COMPQ and the NDX off by .55% and .68% respectively. The SPX fell .66%. Volume was higher across the board. It was up by 12.14% on the New York and 4.60% on the Nasd. This was enough to produce new distribution days on all the major averages. Leading stocks were lower as well, but held up better than the overall market. The leaders index declined .14% on the day but closed low in its trading range. The index traded below its important 17dma but finished above it. Volume was lower but still above average. The selling continued today, but it was primarily news driven. Before the open the President said there may not be a trade deal with China until after the election. There was a big sell off at the open, but the market recovered much of the declines. There was fresh distribution today, but much of the sting was taken out by the closes at the top of the intraday trading ranges. The losses were all in the opening gap. The action today had good and bad parts. The market closed at intraday highs which showed that there was some support under the market. The selling in the last couple of days has caused some damage. The leaders index is holding above important support at its 17dma but the major averages broke below the highs of the recent short consolidation. The fact that buying came in after the early decline is good and the distribution days of the last two sessions were weak. Since today’s decline was news driven a more encouraging story might reverse today’s losses. A somewhat more defensive posture is probably a reasonable position. Jerry