Leaders Index 3-9-22

The market finally staged a relief rally today. The major averages opened higher and worked their way up most of the remainder of the session. All the major averages finished high in their intraday trading ranges. The Nasd averages led the way with the COMPQ and the NDX higher by 3.59% and 3.58% respectively. The SPX rallied 2.57%. Volume was the issue today, it declined across the board. Volume fell 20.70% on the Nasd and 22.21% on the New York. Leading stocks rallied as well with the leaders index higher by 3.72% on the day. The index closed high in its trading range and volume was lower and below average. The market finally was able to stage a rally after several failed attempts. The prices of oil and gold sold off today and gave the impetus for stocks to rally. It was a solid rally on a price basis, but volume was considerably lower and this shows that large institutional players were mostly on the sidelines today. It is not an encouraging sign when the market sells off on high volume and rallies on lower volume. Today’s rally seemed a lot like a strong up day in a bear market. Historically the great majority of the largest up days have occurred during bear markets. The CPI report comes out tomorrow and it will set the tone for trading tomorrow. Jerry