Leaders Index 8-12-22

The market staged a solid up day yesterday as the current rally continued. The major averages opened higher and worked their way up the rest of the session. All the major averages finished at or near their intraday trading highs. The Nasd averages were the strongest due to strength in tech stocks. The COMPQ and the NDX were higher by 2.09% and 2.06% respectively. The SPX rallied 1.73%. Volume was lower across the board. It fell 18.48% on the Nasd and 18.51% on the New York. Leading stocks were higher as well. The leaders index gained 1.61% on the day and closed near the top of its trading range. Volume was lower and below average. This is a new price high for the leaders index. The market continued its rally yesterday with strong price gains in the major averages and leading stocks. Volume was lower, but it is not unusual to have weak volume on Fridays in August as many market participants leave early. The price action was positive and there have been worthwhile gains in some leading stocks and index ETFs. The real line in the sand remains the 200dma’s of the major averages. They are getting close to this important moving average so we should see soon if they can overcome this important resistance. This is the key. If they can’t overcome this resistance then the rally is close to ending. If they can break above this moving average then the rally may have more to run. I still believe that this is a bear market rally and the major averages will turn down again before this bear market is over. Time will tell. Jerry