Leaders Index 6-5-19

The market built on yesterday’s rally with solid price gains today, producing the second day of a rally attempt. The major averages opened higher but quickly sold off into negative territory. From there the major averages rallied into the close. All the major averages finished at or near their intraday trading highs, a good sign. The New York averages were a bit stronger with the SPX gaining .82%. The COMPQ and the NDX were higher by .64% and .76% respectively. Volume was lower across the board, the big negative of the day. Leading stocks were higher as well with the leaders index gaining 1.56% on the day. The index closed In the upper half of its trading range, but volume was lower and well below average. The market continued its rally attempt today with solid gains in all the major averages and the leaders index. The major averages moved higher above their 200dma now support levels and the leaders index is now above both the 9dma and the important 17dma. The real issue here is volume. It was lower by 8.77% on the Nasd and 5.54% on the New York. If this continues the charts of both the leaders index and the major averages will take on a wedging look. Rally attempts without volume behind them more often don’t have the staying power to produce tradable rallies. Right now the next step will be for the major averages and the leaders index to make runs for their respective 50dma’s. They must overcome this resistance on increased volume if this rally attempt is to go anywhere. Jerry