Leaders Index 5-14-21

The market staged a solid rally yesterday, at least on a price basis. The major averages opened higher and worked their way up for most of the day. All the major averages finished high in their intraday trading ranges on late buying. The Nasd averages were the strongest with the COMPQ and the NDX gaining 2.32% and 2.17% respectively. The SPX was higher by 1.49%. Volume was the issue. It was lower across the board. Volume fell 12.49% on the New York and 15.11% on the Nasd. This shows that large institutional players were not buying stocks heavily yesterday. Leading stocks also did well with the leaders index gaining 3.50% on the day. The index closed near the top of its trading range and just below its important 50dma. Volume was much lower and well below average, also showing little institutional buying yesterday. The market staged a solid price rally yesterday for the second session. The major averages were still lower for the week due to larger declines earlier in the week. The NDX is sitting right on its 50dma and the COMPQ is just below this important moving average. The same applies to the leaders index which is also fractionally above its 50dma. If the picture is to improve much these averages must break above this resistance level with conviction and strong volume. The much lower volume was a sign of weakness as institutions were not in the market buying heavily yesterday. It is difficult to get a sustained rally without these investors participating. Every time it looks like there is going to be a sustained move in either direction the market tends to reverse and go the other way. It is dangerous to get to bullish or bearish as the change in direction makes it difficult to make any worthwhile gains either on the long or short side. It is not a good time to be taking a lot of risk. Jerry