Leaders Index 9-21-16

The market rallied strongly today after the Fed decided to leave rates unchanged. The major averages were bouncing around before the announcement and then rallied after it only to sell off again. The market seemed to like the pretty dovish tone at Yellen’s press conference and the major averages rallied into the close with solid gains. The COMPQ gained 1.03% while the SPX rallied 1.09%. All the major averages finished at their intraday trading highs. Volume was higher across the board and above average on both exchanges, a sign that large institutional players were buying stocks today. Leading stocks were strong as well with the leaders index gaining 2.01% on higher and above average volume. The index closed just below it’s intraday high, a sign of strength. It is above all it’s important moving averages and the relative strength line is just below it’s highs. The reaction of the market to the Fed announcement was good. The Nasd averages all went into new high ground today and are looking strong. The New York averages are still below their 50dma’s and they will have to overcome this resistance. It seems the decline of last week was just another false alarm caused by Fed officials shooting their mouths off. It is still hard to get to clear a picture, but the market seems to want to go higher now. There were a few good looking breakouts and pocket pivots today so there are some things to buy. Right now the direction seems to be up again, at least for now. Jerry