Leaders Index 8-10-22

The market staged a strong rally after the CPI report came in lower than expectations. The major averages opened higher and worked their way up the rest of the session. All the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 2.89% and 2.85% respectively. The SPX was higher by 2.13%. Volume was mixed. It gained 16.69% on the New York and declined 3.81% on the Nasd. Leading stocks rallied as well with the leaders index gaining 1.90% on the day. The index closed high in its trading range on lower but above average volume. This is a new price high for the leaders index. The market rallied strongly today after the CPI came in below expectations. The rally was starting to look a little wobbly after the last couple of days, but the inflation report seems to have reignited the up move. The next step in this rally are the 200dma’s of the major averages. This moving average will provide significant resistance to the major averages and its action at this level will tell us if the rally can go much further. Tomorrow the PPI comes out before the open. That will set the tone for tomorrow’s action. Jerry