Leaders Index 10-22-15

It was a strong up session today with the major averages opening higher and rallying through the day. The COMPQ was up by 1.65% while the SPX gained 1.66%. Both finished at their intraday highs. Volume was higher across the board and were above average on both exchanges. This showed that there was solid buying from large institutional players, although much seems due to the ECB saying it would provide more stimulus. Most of the action was in the large cap stocks as the small and mid cap averages lagged. The semiconductors were very strong as the SOX rose 3.48% and broke above it’s 200dma for the first time since early July. Leading stocks lagged as well with the leaders index climbing .75%. The index closed in about the middle of it’s intraday range and was below the opening price. Volume was higher but below average. The index continues to dance with it’s important 17dma and must stay above this support level. The relative strength line of the index is looking weak and is now just above it’s 50dma. It will be negative if it breaks this level. Overall the market is acting better. The COMPQ is now right at it’s 200dma and it must clear this resistance level, but the picture has improved. Strong earnings reports after the close from MSFT, AMZN and GOOGL should help. I will unfortunately be away at a seminar this weekend. The updates will resume again on Tuesday. Jerry