Leaders Index 5-27-25

After some weak action last week the market rebounded strongly after the announcement of a delay in E U tariffs. The major averages gapped higher at the open and rallied most of the day. All the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 2.47% and 2.39% respectively. The SPX gained 2.05%. Volume was mixed, higher on the New York and slightly lower on the NASD. Leading stocks rallied as well. The leaders index gained 1.40% on the day, underperforming the overall market. The index closed in about the middle of its trading range on higher but below average volume. The market was starting to show some weakness last week and a couple of short term indicators I follow turned down. Today’s action was strong and made up for most of the declines last week. The market showed good price gains and at least New York volume was higher. The SPX bounced off its 200dma last Friday, which is good. The action today was caused by the announcement of a delay in some tariffs, along with some good economic news. This shows how news driven this market is and how easy it is to get whipsawed. Leading stocks are acting well, and that is also a good sign. The equal weighted ETFs of the major averages also participated, which shows that the rally was wide spread. The market is acting well overall right now, but it is a bumpy ride. Tomorrow after the close NVDA reports and there are several more economic reports coming out later in the week. You should be invested, but it will likely continue to be a bumpy ride. Jerry