Leaders Index 12-18-25

The market bounced back today after a friendly CPI report. The major averages opened strong and mostly worked their way lower the rest of the day. All the major averages finished low in their intraday trading ranges. The COMPQ and the NDX gained 1.38% and 1.51% respectively. The SPX rallied .79%. Volume was lower across the board. Leading stocks rallied as well. The leaders index gained 2.19% on the day. The index closed in about the middle of its intraday trading range on lower and below average volume. The market bounced back today on a well-received earnings report from MU and a friendly CPI report. The market opened strong, but made its intraday highs early in the session. The CPI report was very encouraging for future rate cuts and the market liked it. Seeing green on the screen today was nice and the action today was overall positive, but there are some issues out there. The question now is if this is a one day wonder or if it has legs. There are some problems with today’s action. The volume was lower across the board, so large institutional players were not heavy buyers. The SPX broke above its 50dma today, but the NASD averages were turned back at this important resistance. If this upturn is to last the NASD averages must break above their respective 50dma’s. Jerry