Leaders Index 6-7-22

The market pretty much reversed yesterday’s action. After opening with losses the major averages quickly found a bottom and rallied the rest of the day. All the major averages finished high in their intraday trading ranges. The COMPQ and the NDX gained .94% and .89% respectively. The SPX rallied .94%. Volume was lower across the board. It fell 8.11% on the Nasd and 5.09% on the New York. Leading stocks had a strong session with the leaders index gaining 2.94% on the day. The index closed high in its trading range on slightly lower volume. This was a new high for the leaders index on both a price and a relative strength basis. The market opened with solid losses but put in its low in the first five minutes. The rally lasted most of the rest of the session in a reversal of yesterday’s action. The market held some moving average support today and that is good. Leading stocks are acting well, but most of the action is in the energy sector. The leaders index is riding its short term 9dma higher, and that is positive action. The market is continuing to try to rally, but so far it is a pretty feeble attempt. If there is to be a counter trend rally it must at least rally up to the 50dma’s of the major averages. There are some inflation numbers coming out later this week and that should have an effect on where the market goes. Jerry