Leaders Index 9-2-15

The roller coaster ride continued today with the market staging a solid rally on a price basis. The major averages opened higher and gained ground the rest of the session. Late strength saw all the major averages finish at their intraday highs. The COMPQ rallied 2.46% while the SPX was higher by 1.83%. The problem today was with the volume. It was lower across the board, showing there was less buying interest today than there was selling interest yesterday. Leading stocks were higher as well with the leaders index gaining 2.26% and closing high in it’s intraday trading range. Volume was very light and the lowest in two weeks. The index closed just above it’s short term 9dma. The major averages were up enough today for a follow through, but for the second time in a week the volume was lower than the day before. In this volatile environment it would not be surprising to see a follow through, although unless it was really strong I would treat it with caution. The Chinese market will be closed for the next two days so maybe things will calm down. All the charts are looking terrible and for now the sidelines are the best place to be. Jerry