Leaders Index 5-16-22

The market tried to put in a solid session today, but couldn’t. The major averages opened lower on bad economic news from China. They rallied and it looked like they would hold up well in the face of negative news. Late selling came in and all the major averages finished low in their intraday trading ranges. The Nasd averages were the weakest with the COMPQ and the NDX falling 1.20% and 1.16% respectively. The SPX lost .39%. Volume was lower across the board. It fell 16.21% on the Nasd and 15.81% on the New York. Leading stocks did better than the overall market with the leaders index gaining 1.23% on the day. The index closed low in its trading range on higher but below average volume. It looked early like the market might react fairly well to bad economic news from China. Solid action would add strength to the argument that we could see a rally here. The late weakness showed that the market is on shaky ground and is having trouble moving higher. Something of a rally here would be a good thing as it would point to the second down leg of this bear market being over. If there is no rally here than the second leg is likely not over. If there is a decent rally here it will be an opportunity to either dump position you didn’t sell earlier or establish short positions. Jerry