Leaders Index 9-15-16

The market had a solid rally session today. After opening higher the major averages rallied into the close and finished near their intraday trading highs. The COMPQ had a gain of 1.47% while the SPX rallied 1.01%. Volume was mixed, higher on the Nasd and lower on the New York. The higher volume on a rally day is good for the Nasd averages, but it would have been better to see higher volume across the board. Leading stocks had a good run as well with the leaders index gaining 1.80% on higher and above average volume. The index closed at the top of it’s intraday range and is now slightly above it’s short term moving averages. To add to the recent confusion the relative strength line of the leaders index made a new high today. It is positive to see quality growth stocks lead the market and we will have to see if prices can follow the lead of relative strength. The volatility continued as we had another day of wide intraday action. This contrasts with the tight action we saw on the way up. The Nasd averages moved higher above their 50dma’s, but the New York averages remain below theirs. We will likely see volatile action with no real trend until after the Fed announcement next week. Jerry