Leaders Index 5-6-25

The market continued to pullback today. The major averages opened lower and after trying to rally back sold off late. All the major averages finished in the lower half of their intraday trading ranges. The COMPQ and the NDX fell .87% and .88% respectively. The SPX lost .77%. Volume was mixed, higher on the New York and lower on the NASD. Leading stocks were lower as well. The leaders index fell .63% on the day. The index closed in the upper half of its trading range on higher and above average volume. The index bounced off its short term 9dma which has controlled the pattern since this recent uptrend started. The market continued yesterday’s decline. The market repeated yesterday’s pattern of early losses and a rally attempt that didn’t hold. Earnings reports so far have been pretty solid. The Fed announcement is tomorrow and that will certainly affect the market. There will be no change to interest rates but Powell’s press conference is always a wildcard. Right now the major averages are trading in a range between the 50dma below and the 200dma above. One should be good support while the other is resistance. Which ever of these moving averages is broken first will tell us if the rally will continue or not. Jerry