Leaders Index 9-16-15

The market had another solid rally session today ahead of the Fed announcement tomorrow. After opening higher the major averages rose steadily the rest of the day to finish at their intraday highs. The COMPQ gained .59% and the SPX rose .87%. This is two days in a row of rising prices. Volume was higher again today, showing that there was some buying by large institutional players. The COMPQ broke above the high of the recent trading range I spoke about a couple of days ago, and that is positive. Leading stocks were a bit more mixed today with the leaders index declining .32% on the session, although most of that decline was due to a 6.40% decline in PAYC, which reversed a breakout it had yesterday. The index closed in the upper half of it’s intraday range, a sign of support. Volume on the index was a bit lower than yesterday but still above average. The market has rallied smartly for two days in a row ahead of a very important fed announcement, possibly discounting a market friendly announcement tomorrow. The COMPQ is now .6% below it’s important 200dma. I have said since the market break over three weeks ago that the COMPQ could rally back to this level and that how it reacts when and if it gets there will tell us a lot. It is just about there. If it can’t get above this resistance level with some conviction and is turned back it will be very negative. If is regains this moving average and continues to advance the picture will brighten. Tomorrow’s action will be informative. Jerry