Leaders Index 3-30-20

Last week’s rally continued today as most of Friday’s decline was regained. The gains were strong across the board with the COMPQ and the NDX rallying 3.57% and 3.96% respectively. The SPX was higher by 3.35%. All the major averages finished at or very near their intraday trading highs as there was buying into the close. Volume was a disappointment. It was lower across the board, declining 2.32% on the Nasd and 6.67% on the New York. This shows that large institutional players were not buying heavily. Leading stocks rallied as well with the leaders index gaining 2.62% on the day. The index closed high in its trading range on lower and below average volume. The market clearly is in a rally after completing the first down leg of the bear market. The gains today were strong and we missed a follow through because volume was lower across the board. If we do get aa follow through right now it looks like the confirming indicators are unlikely to confirm. That could change in the next few days to a week as the % E’s come down as the rally attempt progresses. Right now it is 36.7%, well above the top of the range to confirm. The weekly Coppock is in negative territory but is declining fast and it will take a lot to turn it around. The first follow through in a bear market rarely turns into a tradable rally. Until there is a follow through that is well confirmed it is best to stay out of the way of this market. Jerry