Leaders Index 5-6-19

The market had a couple of fairly weak days last week before a strong rally on Friday due to a strong employment report. There was weakness early today on statements from the government that there would be tariffs on China going into effect on Friday. The major averages opened down hard, but made their lows in the first five minutes and spent the rest of the session rallying. All the major averages reversed higher and regained most of the losses, closing at or very near the top of their intraday trading ranges. The COMPQ and the NDX were lower by .50% and .66% respectively. The SPX declined by .45%. Volume was lower across the board. Leading stocks were lower s well with the leaders index falling .70%. The index closed near the top of its trading range and right on the 17dma. Volume was lower but slightly above average. The action overall today would have to be considered positive. There were sizable losses early based on news, but most of the losses were recovered by the end of the session. The recovery showed that there were buyers under the market as prices fell. The lower volume also indicates that there was little selling, even early, based on the China news. The market is acting like it wants to continue to rally. There are some caution flags out there, but in at least the short term the market will likely continue higher. Jerry