Leaders Index 3-14-25

The market staged a nice rally yesterday. The major averages opened higher and mostly worked their way up the rest of the day. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX gained 2.61% and 2.49% respectively. The SPX rallied 2.13%. Volume was lower across the board, not what you want to see on a rally day. Leading stocks had a strong session as well. The leaders index rallied 5.46% on the day. The index closed high in its trading range on lower but above average volume. The market staged a nice rally yesterday, at least on a price basis. The market opened strong and built on those gains the rest of the day, closing strong. We have seen several good price days in this decline that have turned out to be one day wonders. Yesterday could be one of them, but there are a couple of other indicators that say this one might be a bit more. Volume was lower yesterday. This is not what you want to see on a rally day in a declining market. But there was a Eureka signal yesterday, which is encouraging. There are also a couple of short term indicators I look at the are acting better. The Summation Index and the A’s minus E’s are both still headed down. But both have seen the rate of decline get smaller, possibly setting up a turnaround. If the positive action continues next week both will likely turn up. We could also get a follow through next week if there is a strong up day on higher volume. The weekly Coppock however is not likely to signal. It went negative last week, but it has a head of steam going on the downside and it would take a big rally to turn it. This is not likely soon. Yesterday’s rally has a better chance of turning into a tradable rally than recent up days, but it is at best likely to be a countertrend rally in a bear market. Jerry