Leaders Index 4-9-25

The market finally had a real relief rally after news that the tariffs would be delayed. The major averages opened a little higher and didn’t do much until the news was announced. Then the major averages took off and rallied into the close. All the major averages finished near their intraday trading highs. The gains were large, with the COMPQ and the NDX rallying 12.16% and 12.02% respectively. The SPX was higher by 9.52%. Volume was a lot higher across the board. Leading stocks were strong as well. The leaders index rallied15.88% on the day. The index closed high in its trading range on higher and extremely high volume. The market staged a strong relief rally on news that the tariffs would be delayed. As soon as the news came out the market rallied hard and continued into the close. The gains were about as large as I have seen in many years. It also contributes to the bear market thesis as most large daily moves usually occur in bear markets. I guess today starts a new rally attempt, but I would be cautious. A follow through could be caused by volatility alone. The real question now is if this is going to amount to much or is a flash in the pan. The 200dma’s of the major averages will provide the first real resistance. Overcoming this resistance will be tough. There is a lot of news coming the rest of the week. The CPI is tomorrow and the PPI is Friday. Also earnings season kicks in on Friday with several big banks reporting. Jerry