Leaders Index 5-1-18

The market put in an overall slightly positive session today. The major averages opened lower and continued down for about half the day until some buying came in and prices rallied. The Nasd averages were the strongest with the COMPQ and the NDX higher by .91% and 1.16% respectively. The SPX was up by .25%. All the major averages closed at their intraday trading highs, a good sign. Volume was lower across the board, according to esignal, not what you want to see as prices rebound. Leading stocks were up slightly today with the leaders index gaining .18% on the day. The index closed near its highs of the day and is still sitting right on its 17dma support level. Volume was higher than yesterday but still well below average. The fact that the major averages were able to overcome some early losses and get into positive ground is good. The leaders index is right on its important 17dma support level. How it trades from here will tell us a lot about the future of the rally attempt. If the index breaks below this support level it would indicate that lower prices are ahead. All the major averages remain below their 50 day moving averages. If there are to be higher prices they will have to break above this resistance level with some real conviction. If they can’t then the market will sell off. Jerry