Leaders Index 3-18-15

The markets gapped lower at the open today and declined most of the morning. The major averages were working on some decent losses until the Fed announcement at 11:00(Pacific time). Market participants viewed the announcement and Yellen’s press conference as saying that a rate increase was not likely for the next couple of meetings so the major averages reversed higher into the close. A little late weakness saw the market close a little off it’s highs but all the major averages finished near intraday highs. The New York averages led the way with the SPX rising 1.22% while the COMPQ gained .92%. Both small cap and mid cap stocks were strong as the RUT and MID both set new highs. Volume was much higher than yesterday and well above average so large institutional players were buying stocks. Leading stocks had a good session as well as the leaders index rose 1.26% on higher and well above average volume. The index set new highs on both a price and relative strength basis. Quality growth stocks continue to outperform the overall market, which is positive for prices at least in the near term. The Fed continues to be the most important factor as anything interest sensitive or income related, from bonds to REITs and MLPs rallied hard. Progress to the upside will likely be labored, but it looks like there will not be a serious decline until the Fed actually starts to raise rates. Jerry