Leaders Index 8-4-25

The market bounced back after Friday’s decline. The major averages opened with gains and mostly worked their way higher the rest of the session. All the major averages finished high in their intraday trading ranges, recovering most of Friday’s losses. The COMPQ and the NDX gained 1.95% and 1.87% respectively. The SPX rallied 1.47%. Volume was lower across the board. Leading stocks had a strong session as well. The leaders index gained 3.25% and closed high in its trading range. Volume was lower and below average, while the relative strength line of the index made a new high. The market bounced back nicely today after falling hard on Friday. The only negative in today’s action was the significantly lower volume. After a big decline you want to see the quality of the bounce. We had a good price move today but the lower volume is a concern. PLTR came out with earnings after the close and they were well received. The stock is trading mildly higher in after-hours trading, along with the major average futures. The market closed strong today and recovered most of Friday’s decline. This is good, but the lack of volume is at least a yellow flag. The major averages recovered some short term moving averages today, but a continued move higher on hopefully strong volume would help remove some clouds. We need to see the market move higher pretty quickly or we could see a correction of still unknown but likely relatively mild dimensions. Jerry