Leaders Index 9-14-16

The market tried to rally early but couldn’t get much traction. After some gains the major averages sold off and closed low in their intraday trading ranges. The Nasd averages outperformed, mostly due to AAPL, with the COMPQ gaining .36% and the NDX rallying .49%. The New York averages were weaker as the SPX was pretty much flat with a decline of .06%. The most strength was in the semiconductors as the SOX rallied .90% and the small and mid cap stocks were lower. Volume declined across the board, showing that large institutional players were not as active today as they were in yesterday’s decline. Leading stocks were generally higher with the leaders index gaining 1.04% on lower but slightly above average volume. The index closed just above the mid point of it’s intraday trading range and a bit above it’s 50dma. This moving average is right now proving support for the index, but it seems to be consolidating at lower prices right now. After yesterday’s big decline, that had weak enough internals to produce a Phoenix signal, you would want to see a good sized bounce on strong volume. The major averages tried early but couldn’t pull it off. The COMPQ held it’s 50dma but all the New York averages remain well below this important support level. The market is having a difficult time rallying after selling off, usually a sign of lower prices ahead. It is hard to get to excited about either direction as the results of the Fed meeting next week could turn the market higher, or could provoke further weakness. There were a couple of good breakouts today in AAPL and GIMO, but that doesn’t appear to be enough to get the market going. Right now a more defensive stance is probably appropriate, at least until after the Fed meeting. Jerry