Leaders Index 5-5-23

The market put in a solid rally after the employment report came in stronger than expected. The major averages opened higher and mostly worked their way up the rest of the session. All the major averages finished near their intraday trading highs. The COMP and the NDX gained 2.25% and 2.13% respectively. The SPX rallied 1.85%. Volume was the issue here. It was lower across the board. You would rather see higher volume on a big rally day. Leading stocks were higher as well with the leaders index gaining 2.77% on the day. The index closed back above its 50dmaon higher and about average volume. The market bounced back after the employment report came in stronger than expected. It was a bit of a change from recent action. The market didn’t interpret stronger than expected economic news as a sign of higher interest rates. Powell seemed to indicate that the Fed was done raising rates and would hold them where they are for the time being. Maybe now the market will take solid economic news as a sign that the economy may avoid a recession or at least have a mild one. Maybe good news is now good news for the markets and not a sign of higher interest rates to come. Either way one day’s action is not a reason to get to excited. The market is still struggling and not producing much in the way of real winners in individual stocks. I still think the market is in a trading range and is not ready for a real sustained rally yet. Jerry