Leaders Index 9-18-18

The market rebounded after yesterday’s decline. The major averages opened higher and spent most of the rest of the session working their way higher. The Nasd averages led the way with the COMPQ and the NDX gaining .76% and .80% respectively. The SPX was higher by .54%. These are nice gains but they are smaller than yesterday’s losses. All the major averages finished high in their intraday trading ranges, a good sign. Volume was slightly higher across the board, which is what you want to see on a rebound. Leading stocks were higher as well, but the gains were much less than yesterday’s declines. The leaders index rallied .79%, but closed low in its trading range. The index remains below its short term 9dma and 17dma. These moving averages are now significant resistance for the index. Volume was lower than yesterday but still slightly above average. The rebound today was good news for the market. It did not however have as much punch as yesterday’s decline. The gains in the major averages and the leaders index were much smaller than the previous session’s declines. The Nasd averages seem to be making a nice bounce off their important 50dma support levels and we saw higher volume levels today. If we can get some at least short period of quiet on the trade front the market may well work its way higher, but I would say today’s action was a little underwhelming and we want to see stronger gains in quality growth stocks to really get things moving on the upside. There will be no update tomorrow due to the Yom Kippur holiday. Jerry