Leaders Index 5-21-19

The market put in a nice rally today, at least on a price basis. The major averages opened higher and worked their way up for most of the session. All the major averages finished in the upper half of their intraday trading ranges, positive action. The Nasd averages were slightly stronger with the COMPQ and the NDX gaining 1.08% and 1.01% respectively. The SPX rallied .85%. Volume was lower across the board, not what you want to see as prices try to rally after a decline. Leading stocks were higher as well with the leaders index higher by 1.96% on the day. The index closed in the upper half of its trading range, but remained below its 9dma. Volume was lower but slightly above average. The market rallied back from yesterday’s decline, but it was an unconvincing move. The major averages closed in the upper half of their trading ranges, but the gains were less than yesterday’s losses. Volume was also less than in the previous day’s decline. This is critical as it shows that large institutional players were not in the market buying heavily today. We still face the same situation. The major averages and the leaders index must regain their 50dma now resistance levels with volume in order to improve the picture. For now the path of least resistance still appears to be down. Jerry