Leaders Index 2-24-22

The market staged a strong reversal today. The market opened lower on news of the Russians going into the rest of Ukraine, but quickly found a bottom. The major averages started higher and accelerated the advance after new sanctions were announced. All the major averages finished near their intraday trading highs as buying continued into the close. The Nasd averages led the way with the COMPQ and the NDX higher by 3.34% and 3.44% respectively. The SPX gained 1.50% while the SOX rallied 3.70% as tech stocks were strong. Volume was considerably higher with a gain of 33.76% on the Nasd and 43.08% on the New York. Leading stocks were higher as well with the leaders index gaining 2.16% on the day. The index closed high in its trading range on much higher and well above average volume. After the recent decline a relief rally was to be expected. There was a positive reversal after early selling and the major averages went on to strong gains on heavy volume. This kind of action is not unusual as a bounce after a big decline is pretty normal. Today’s action constitutes a rally day and thus day one of a rally attempt. It looks a lot like the last rally day on 1/24. The strong volume today was the highest since the last rally day that led to a quickly failed follow through. If we were to get another follow through due to this rally day’s action I don’t think the results would be any different. Today’s action has a lot of the look of a big up day in a bear market. I don’t believe it will lead to any sustained upside action, although a minor rally could always occur. Jerry