Top 10 Report – July 22, 2020

The Indexes

The NASDAQ rallied powerfully on Monday, albeit on lighter volume. Then yesterday, right after the opening bell, it gapped up to new all-time highs, before it ultimately reversed, closed down on the day and near session lows on heavier volume. This qualifies as churning action and adds a distribution day to its count.

The S&P 500 cleared significant resistance, albeit on lighter volume Monday. It proceeded to follow through to the upside immediately after yesterday’s open, but ultimately rolled over and closed near session lows as volume on the NYSE expanded, which qualifies as churning action and adds a distribution day to its count.

The small-cap Russell 2000 gapped up at the open, rallied 1.39% on heavier volume, and closed above mid-range as it continued to make constructive progress higher yesterday.

The DOW has been consolidating constructively right above critical support for the last week or so and appears to be getting ready to move higher from here.



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