Leaders Index 10-8-15

[Jerry Samet]

The market was mostly lower early and it looked like it could be a negative session. After drifting sideways the major averages rallied after the Fed minutes came out and it looked like a rate increase was not immanent. The major averages finished with solid gains near the highs of the trading day. The COMPQ was up by .41% while the SPX gained .88%. Volume was lower across the board. The SPX broke above it’s important 50dma, which is a god sign. Several other indices joined the SPX in regaining their 50dma’s. The mid and small cap averages also broke above this resistance level. The COMPQ is still slightly below it’s 50dma, but the NDX regained it. Leading stocks were generally higher on the session but underperformed the overall market. The leaders index was down .21% on the day, mostly due to a 5.61% fall in CALM, but the rest od the components of the index were mostly higher. Volume was lower but slightly above average. Today’s action went a long way to improving the picture. Many major averages broke important resistance on the session. It still doesn’t look like a particularly strong move, but there may be some more upside in the short term. Jerry