Leaders Index 3-16-16

It was a good session today. The major averages treaded water early waiting for the Fed announcement. When it came out saying there would be no rate hike now and probably not for a while the market rallied. The major averages finished with solid gains of .75% for the COMPQ and .56% for the SPX. Small and mid cap stocks were the strongest along with the semiconductors. The RUT gained .74% while the MID and SOX rallied 1.03% and .88% respectively. Volume was higher across the board but still below average. This showed that large institutional players were buying stocks today. Leading stocks had a generally good session as well with the leaders index rising .94% on higher volume, although it was still below average. The relative strength line of the index turned up a bit today, but the index itself is still within the consolidation range it has been in for two weeks. It would be a very positive sign if the index could make a new high with some conviction. The SPX in particular had positive action today as it broke convincingly above it’s 200dma, which has been the primary resistance on it’s chart. All the other major averages made new highs for the move. The rally is intact and acting pretty well right now. There were some breakouts today, but we are still not seeing strong gains in quality growth stocks. Without this action the durability of this rally is still suspect. We should be seeing better action in leading stocks. Jerry