Leaders Index 7-7-22

The market had a strong session today, at least on a price basis. The major averages opened higher and worked their way up most of the remainder of the session to close with good gains. All the major averages finished near the top of their intraday trading ranges. The COMPQ and the NDX gained 2.28% and 2.16% respectively. The SPX gained 1.50%. Volume was lower across the board. It declined 2.98% on the Nasd and 8.17% on the New York. It would have been better if higher volume had accompanied the price gains. Leading stocks were higher as well with the leaders index gaining 5.19% on the day. The index closed in the upper half of its trading range on lower and below average volume. The market staged a good gain today that put the rally attempt on better ground, although it is still pretty weak. There was a bit of a rotation in recent days from defensive and value stocks to more growth oriented stocks. The major averages came closer today to their main obstacle, the 50dma’s of the indexes. They are pretty close as the COMPQ is less than 1% below its 50dma while the SPX is just under 2% below this important resistance. We should know soon if they will be able to overcome this important moving average. Tomorrow before the open the employment report will come out and this will set the tone for trading early. Next week earnings season begins and the CPI report will come out. These will likely be critical in determining if the rally can go much farther. Jerry