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View Full Version : Leaders Index 10-15-14



Jerry Samet
10-15-2014, 11:05 PM
It was a wild day. The markets opened considerably lower and continued down until about mid day. News of weaker than expected retail sales and a new Ebola scare drove the market to an extreme sell off. It looked like it would be even worse than Friday’ decline but at 10:30(Pacific time) the major averages reversed and started to rally. The SPY still closed with a loss of .81% while the COMPQ fell .28%. The small caps led the rebound with the RUT up by 1.02%. Volume increased dramatically and was well above average and all the major averages closed near their intraday highs. The averages took out their recent lows so the rally count starts again. Leading stocks did better than the overall market with the leaders index rising .86% on very strong volume. The index also took out it’s recent low then reversed to close higher and near it’s intraday highs. Volume on the index was the highest since July. The selling was probably over done at the lows today, but the kind of reversal we saw today can produce at least a short term low in the market. It would have been better for the major averages to close in positive ground, but what we saw was still encouraging. The major averages are certainly over sold short term and with today’s reversal will likely see something of a rally attempt. How they act at their 200dma’s will be important. They must get above this important resistance with some conviction for today’s action to be something more than a flash in the pan. Jerry