Leaders Index 4-10-25

[Jerry Samet]

The market gave back a good chunk of yesterday’s gains. The major averages opened lower and traded around in negative territory all day. They all finished in the upper half of their intraday trading ranges. The COMPQ and the NDX fell 4.31% and 4.19% respectively. The SPX lost 3.45%. Volume was lower across the board but still heavy. Leading stocks lost ground as well. The leaders index fell 5.30% on the day. The index closed in the upper half of its trading range on lower and above average volume. It looks like yesterday might turn out to be a one day wonder after all. The major averages gave back a good chunk of yesterday’s big gains. There was no follow up to the reversal yesterday. The volatility has been huge lately. Large daily moves above 4% are associated with bear markets. We have seen four of the last six sessions with moves bigger than this in both directions. The CPI report came out before the open and was friendly. This wasn’t enough to get the market going. When the market responds poorly to what should be good news it is a sign of weakness. We get the PPI tomorrow before the open and a few earnings reports. It doesn’t look like the volatility is going to subside. This is the kind of market that it is easy to get hurt in. Stay out. Jerry