Leaders Index 5-28-20

The market had a nice rally going until selling came in a little more than two hours before the close. News of an executive order on regulation of social media companies and tension with China over Hong Kong caused selling to come in. The early gains were lost and all the major averages finished in negative territory. All the major averages closed near the bottom of their intraday trading ranges. The COMPQ and the NDX were off by .46% and .27% respectively. The SPX declined by .21%. Volume was lower across the board. It fell by 16.18% on the New York and 9.29% on the Nasd. This shows that large institutional players were not heavy sellers of stocks today. Leading stocks sold off their highs as well but were stronger than the overall market. The leaders index closed higher by 2.13% on the day. It closed low in its trading range but regained and held the short term 9dma. Volume was lower and below average. The market lost early solid gains due two news stories. This type of action is often quickly overcome when the trend of the market is higher. The fact that there was lower volume on the negative reversal was encouraging as it showed that there was not heavy distribution in the selling. The futures are a little higher at the time of this writing. Despite the late decline the damage was limited. The SPX held its just regained 200dma and its 50dma is now headed higher. The market still appears to be headed for its old highs. Jerry