Jerry Samet
06-17-2015, 11:44 PM
The market opened higher than worked it’s way lower prior to the Fed announcement. The news from the Fed was fairly positive as it seems that they will not be raising rates until late this year. The major averages responded well to the news as they rallied to the day’s highs. A little late weakness saw them close off the lows but still in the upper half of their intraday trading ranges. The COMPQ rose .18% while the SPX climbed .20%. Volume was higher across the board, a good sign on an up day that saw the major averages close high in their ranges. The COMPQ continues it’s bounce off the 50dma while the SPX remains below this important moving average. Leading stocks continued to outperform the overall market. The leaders index rose 1.10% on slightly higher but still below average volume. The index finished in the upper half of it’s intraday range and made new highs on both a closing and an intraday basis. The relative strength line also made a new high. The chart of the leaders index is looking strong. It has been riding it’s 9dma for weeks now, quite a feat for an index of 21 stocks. As long as the leaders index is acting well the chance of a serious correction is small. The first real warning of weakness in quality growth stocks will come when the index breaks below it’s 9dma. For now holding top notch stocks is advisable, but getting carried away is probably not a good idea. Jerry