Leaders Index 5-2-22

The volatility continued today. After some solid losses earlier in the day. A little more than an hour before the close buying came in and the major averages rallied into the close. All the major averages finished at or very near their intraday trading highs. The Nasd averages were the strongest with the COMPQ and the NDX gaining 1.63% and 1.72% on the day. The SPX rallied .57%. Volume was higher across the board. It gained 6.12% on the Nasd and 9.96% on the New York. Leading stocks regained much of earlier losses but closed in negative territory. The leaders index finished lower by .26% and closed high in its trading range. Volume was lower and below average. After Friday’s hit you would like to see a solid rebound. It didn’t look like it would happen until the last hour when the market reversed higher and rallied into the close. The move higher on stronger volume was good and these reversals can lead to rallied of varying durations. I don’t think this one will go very far. We are clearly in a bear market and short sharp countertrend rallies occur often. There is a lot of news this week that will effect the market. Continued earnings reports are coming out and the Fed announcement will come on Wednesday. Friday will see the monthly employment report. Today is technically a rally day in a new rally attempt, but don’t get to excited. Jerry