Leaders Index 4-21-21

[Jerry Samet]

The market opened slightly lower but quickly reversed and rallied for most of the rest of the session. Late strength saw all the major averages finish at their intraday trading highs. The gains were pretty evenly divided. The COMPQ and the NDX gained 1.19% and .91% respectively. The SPX was higher by .93%. The small and mid cap stocks also did well, along with the semiconductors. Volume was the issue today. It was lower across the board, declining 12.80% on the New York and 7.13% on the Nasd. It is not encouraging to see lower volume on a big price rally. Leading stocks had a good session as well with the leaders index higher by 3.31% on the day. The index closed high in its trading range and regained its 17dma. It closed just below its 9dma. The relative strength line of the leaders index also regained its 50dma. Volume was lower and below average. The market had a good rally today and got back a chunk of the declines of the last couple of days. The charts of the major averages and the leaders index look better after today’s advance and it does feel good to see prices advance. The problem today is the volume. It was lower across the board, which is not the kind of action that gives one confidence in the price action. There has been pretty light volume on up days since the rally resumed and this is a concern. A rally that shows this type of wedging action has a pretty high probably of not having a lot of legs. It is still a bit of a struggle to make a lot of progress right now, so while the market may well go somewhat higher from here the risk is pretty high. There will be no updates tomorrow or Friday. They will resume on Monday. Jerry
I will be doing a presentation on "How I create my Leader's Index" for Molly's World this Saturday April 24 at 10 AM.
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