Leaders Index 12-14-16

The market opened with little change and stayed that way until the Fed announcement. Even then there wasn’t much action until Yellen’s press conference began. Then it got pretty volatile and a decline began. After the expected rate hike the major averages fell until there were some meaningful losses. The COMPQ finished the session with a decline of .50% while the SPX lost .81%. Both closed near the bottom of their intraday trading ranges. Volume was mixed on the day, lower on the Nasd and higher on the New York. This was enough to produce a new distribution day on the New York averages. Leading stocks generally did better than the overall market with the leaders index declining .27% on the day. The index closed in the lower half of its trading range and is a bit below the short term 9dma. Volume increased quite a bit and was well above average. This shows that there was a lot of selling pressure in quality growth stocks. Volatility after a Fed announcement is pretty common and we are probably due for a pullback anyway. The charts of the major averages still look ok and are holding short term support. The chart of the leaders index is starting to tell another story. It failed to reach new high ground as the major averages did. This has set up a lower high pattern. There is still no pattern of lower lows. The index must break back above its short term 9dma and 17dma, preferably on strong volume, to improve the chart. Jerry

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