Leaders Index 6-27-22

The market held on to most of Friday’s gains, but wasn’t able to build on them. The major averages opened modestly higher but traded lower most of the session. All the major averages finished near their intraday trading lows. The COMPQ and the NDX fell .72% and .81% respectively. The SPX lost .30%. Volume was lower across the board, as would be expected after a Russell rebalancing day. It was lower by 9.67% on the Nasd and 20.69% on the New York. Leading stocks had a good session with the leaders index gaining 4.99% on the day, as strength came back into energy stocks. The index closed high in its trading range and just below its important 50dma. Volume was lower and just below average. The market held on to most of the previous day’s gains, but it was a lackluster session. There was no ability to build on the recent rally attempt. Volume was lower, but there was not much chance of it increasing after a rebalancing day. Since there was a follow through on Friday, I tried to put together a new leaders index over the weekend. I was not able to find enough stocks to create a new index, in fact it wasn’t even close. Right now there is no real leadership in the market. Previous leaders like energy stocks did well today and the health care stocks looked better. This is pretty thin leadership for a rally attempt. As I said over the weekend, the real key for this rally attempt is the declining 50dma’s of the major averages. All are less than 4% below this critical resistance and they will have to break above it, hopefully on volume, or this follow will fail like the four others there have been since the bear began. It shouldn’t be long before we see how that plays out. jerry