Leaders Index 2-7-23

It was a wild ride today but a strong finish. The major averages traded mostly somewhat lower until Powell’s speech. They then bounced from gains to losses before late buying came in and drove the major averages to close at their intraday trading highs. The Nasd averages led the way with the COMPQ and the NDX gained 1.90% and 2.12% respectively. The SPX rose 1.29%. Volume was higher across the board, continuing the recent pattern of higher volume on rally days. Leading stocks rallied as well with the leaders index gaining 1.17% on the session. The index closed high in its trading range on higher but below average volume. This was a new closing high for the leaders index. The market was mostly lower until Powell’s speech and after strong moves in both directions finished with a solid rally. There was little new in the speech and after a couple of down sessions the market rallied. The higher volume continued the recent pattern of gains on higher volume and declines on lower volume. This is positive as it shows large institutional players are accumulating stocks. We have made a good sized move in recent weeks and some sort of a consolidation or minor sell off would be expected and even welcomed. Overall the market looks strong and the rally is on solid ground. Jerry