Leaders Index 6-3-16

It was another overall positive day for the market. There was bad news before the open as the employment report came in much weaker than expected and a couple of other reports were below expectations as well. There was a sell off at the open, but it didn’t last. For the first hour of trading the major averages declined, but then they reversed and began a rally that lasted most of the rest of the session. A little late weakness say them close off their absolute highs, but still strong. The COMPQ lost .58% while the SPX fell .29%. All the major averages finished high in their intraday trading ranges, a sign of support. Volume was lower on the Nasd so there was no distribution there. IBD had volume higher on the New York and a new distribution day there, but esignal and the WSJ had it slightly lower. The numbers were close however. Leading stocks were lower as well but also finished strong. The leaders index fell .50% on the day, a bit more than the SPX, but it too closed near the top of it’s intraday range. The index traded below it’s short term 9dma but finished well above this support level, a sign that buying came in to support the components of the index. News is important, but the market’s reaction to news is more important. There was clearly negative economic news yesterday and a real decline after recent strength would not have been surprising. After selling off early the major averages and the leaders index showed some real strength. This would indicate that the market wants to go higher in at least the short term. Jerry