Leaders Index 5-6-24

The market staged a strong rally on Friday after a weaker than expected employment report. The solid price action continued today with solid gains in the market. The major averages opened higher and rallied most of the day. Late strength saw all the major averages finish near their intraday trading highs. The COMPQ and the NDX gained 1.19% and 1.13% respectively. The SPX rallied 1.03%. Volume was lower across the board. Leading stocks had a good day as well with the leaders index higher by .95% The index closed in the lower half of its trading on lower and below average volume. The market seems to want to rally from here. There were two days last week that were close to a follow through but didn’t have the volume. On Friday the COMPQ broke above its 50dma and all the other major averages followed it today. It would have better to see it happen on higher volume, but that didn’t happen. Quality growth stocks have been acting alright recently. The leaders index is at a new high on both a price and a relative strength basis. The market has been acting better in recent days and seems to want to go higher. There are concerns out there, such as the lack of a follow through and the fact that the weekly Coppock is not in a position to signal. Despite that, some cautious buying is probably ok. Jerry