Leaders Index 3-16-22

The market had a volatile session today both before and after the Fed announcement. The major averages opened higher and after some weakness buying came in and the market rallied into the close. All the major averages finished near the top of their intraday trading ranges. The Nasd averages were the strongest with the COMPQ and the NDX gaining 3.77% and 3.70% respectively. The SPX rallied 2.24%. Many secondary averages also had strong sessions. Volume also came in today as it was higher across the board. It gained 18.98% on the Nasd and 16.44% on the New York. That was enough for a follow through on the SPX. Leading stocks were strong as well with the leaders index gaining 3.27% on the day. The index closed near the top of its trading range on higher and above average volume. The market had a volatile session today. There was early strength but the market sold off until the major averages were in negative territory. The market seemed to like Powell’s press conference and rallied into the close. The SPX remained above its lows of the rally day on 2/24 and so today’s action constituted a follow through. As of now it is a poorly confirmed follow through. The weekly Coppock seems to be slowing its decline so far this week but it would take a good move from here to turn it up. There was no Eureka signal today and the %E’s are 26.4%, well above the top of the range. It looks like this is a poorly confirmed follow through that had a poor chance of producing a tradable rally. There are no certainties in the stock market and this follow through could succeed as there was good action in quality growth stocks. Any way I would treat today’s action with a good degree of caution as the odds are against this follow through. Jerry