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Thread: Leaders Index 5-15-19

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    Leaders Index 5-15-19

    The market staged a solid rally today, at least on a price basis. After opening lower the major averages made their lows in the first few minutes of trading and spent the rest of the session rallying before selling off a little at the end. All the major averages closed near their intraday trading highs, a good sign. The Nasd averages led the way with the COMPQ and the NDX gaining 1.13% and 1.37% respectively. The SPX was higher by .58%. Volume was lower across the board with the Nasd volume down by 2.75% and New York volume declining 4.00%. Leading stocks were higher as well as the leaders index gained 1.58% on the day. It tagged its 50dma at its highs but could not overcome this resistance level. The index closed high in its trading range, but volume was lower. The market acted well today, but there were some issues. The major averages opened lower, but reversed higher and rallied for most of the session. This is encouraging, but the issue is volume. It has not been there. We have seen two days of prices rallying after Monday’s big decline, but each has been on lower volume. It is still early, but if this continues for another day or two the major averages will take on a wedging look. The leaders index looks exactly the same. There are two up days after the decline on Monday, but each has been on successively lower volume. Potential wedging. Somewhat positive comments on the trade front also accounted for some of the move today. All the major averages remain below their important 50dma’s. If this rally attempt is to go anywhere we must break above this resistance level on both the major averages and the leaders index. Volume will also be key here. The break above the 50dma’s must be accompanied by strong volume to show that large institutional players are buying stocks. It is difficult for the market to advance much without them. Jerry
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