Leaders Index 12-15-15

[Jerry Samet]

The market opened strong today with the major averages gapping higher. Both major averages saw their highs shortly after the open and traded mostly sideways the rest of the session. The COMPQ closed the day with a gain of .87% while the SPX rallied 1.06%. Both finished off their intraday highs with the SPX closing in the upper half of it’s intraday range while the COMPQ finished at the bottom of it’s trading range. The COMPQ regained both it’s 200dma and it’s 50dma, but lost the 50dma before the close. The SPX remains well below both these important moving averages. Volume was lower across the board, showing that large institutional players were not heavy buyers today, not what you want to see. Leading stocks outperformed the overall market with the leaders index gaining 1.46% on about flat and average volume. The index remains well below it’s important moving averages and the 17dma is about to join the 9dma below the 50dma. The Fed will announcement it’s decision on a rate increase tomorrow and that will set the tone for trading. How the market reacts to what ever the decision is will tell us a lot about the direction of the market. Jerry