Leaders Index 8-6-24

The market bounced today after three days of decline, but it wasn’t a strong bounce. The major averages opened higher and rallied to solid gains. Selling came in late and much of the gains were lost, although the major averages finished with gains. The COMPQ and the NDX rallied 1.03% and 1.02% respectively. The SPX was higher by 1.04%. All the major averages finished in the lower half of their intraday trading ranges. Volume was lower across the board. Leading stocks were higher as well with the leaders index gaining 3.22% on the day. The index closed high in its trading range on lower and above average volume. The market rallied today after the recent declines, but it was not an impressive rally. After a big decline you look to the quality of the bounce to help determine if the worst is over. Today’s bounce didn’t inspire confidence. Volume was lower and the late selling produced a weaker close. The major averages need to break above their respective 50dma’s to inspire any confidence. I don’t think this correction is over. Jerry