Leaders Index 5-10-16

The market had a strong rally today. The major averages opened higher and climbed continuously during the session. All the major averages closed at their intraday highs, a sign of support. The COMPQ finished with a gain of 1.26% while the SPX rallied 1.25%. Volume was mixed. Higher on the Nasd and lower on the New York. Leading stocks were higher as well with the leaders index rallying .47% on the session and closing high in it’s intraday trading range. The index closed fractionally above the important 50dma support level. It underperformed the major averages so the relative strength line of the index fell. The COMPQ rose right up to it’s 50dma, it will be important to see if it can convincingly retake this now resistance level. This market is kind of in Never Never Land. We are more than seven years since the start of the cyclical bull market. This is almost unprecedented. Every time the market looks like it is getting into a real decline strength comes in to turn it around. Weather this is real strength or artificial strength is difficult to tell. The enormous amount of money printing and zero or even negative interest rates that the central banks of the world have produced in recent years has distorted the markets and rules and indicators that have worked well for decades are misfiring. I don’t really know where this thing is going to go. You almost have to take it on a day to day basis. Jerry