Leaders Index 3-15-22

The market staged a solid relief rally today. The major averages opened higher and mostly worked their way up the rest of the session. Late buying saw all the major averages finish near their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gaining 2.92% and 3.16% respectively. The SPX rallied 2.14%. There was strength in the secondary averages as well. The issue today was volume. It fell across the board. Nasd volume was off by 8.82% while New York volume fell 4.25%. This continues the negative pattern of higher volume on declines than there is on rallies. Leading stocks rallied as well with the leaders index higher by 2.41% on the day. The index closed high in its trading ranges on lower and below average volume. The market rallied today in what looks like another strong up day in a bear market. Prices rallied nicely but volume was again missing. High volume declines and lower volume rallies are a sign of a weak market as large institutional players are selling stocks. The rally today was said to have been triggered by lower oil prices and the PPI coming in a little below expectations, although it showed double digit inflation in the last twelve months. The Fed announcement will come out tomorrow and they will begin a rate increasing cycle. At this point they are so far behind the curve that it is hard to see how they catch up without larger rate increases than are now being talked about. Today’s action does not change the overall picture. Jerry