Leaders Index 5-5-25

After a solid session Friday on a well-received employment report, the market sold off today. After opening lower the major averages rallied back to about unchanged before selling off into the close. All the major averages finished low in their intrada trading ranges. The COMPQ and the NDX fell .74% and .67% respectively. The NDX declined .64%. Volume was lower across the board. Leading stocks were moderately higher today. Since the rally looks like it is getting better I created a new leaders index last week and will begin using it today. I have included a text file with the components of the index. The index rose .33% today on lower and below average volume. The index closed in the upper half of its trading range. The market sold off today after Friday’s gains. The major averages recovered almost all of the early losses and it looked like it could be a positive session. Selling came in and the major averages ended up with moderate losses. There are a lot of mixed signals right now, but some positive items are there as well. The weekly Coppock is now in a position to signal. If the COMPQ closed the week where it is now there will be a buy signal. That would help confirm the follow through we just had. That would greatly improve the chances that this will become a tradable rally. The next real test for the major averages will be their respective 200dma’s. They have to overcome this important moving average to go much farther. The NDX tagged its 200dma on Friday before turning back. It looks like this is the second countertrend rally in this bear market. The first one was very weak and failed quickly. This one has a better chance of success. If the pattern holds after this rally ends the market will begin the third, and hopefully last, down leg of the bear market. That is the most common pattern in bear markets, but there are some that don’t follow it. Right now the market seems to want to go higher and a weekly Coppock signal would certainly help. Jerry