It was a wild day. The market was weak early before the Fed announcement, but made a bottom right after it came out. The major averages bottomed out and rallied into the close. All the major averages finished at or very near their intraday trading highs as buying continued into the close. The Nasd averages were the strongest with the COMPQ and the NDX gaining 2.15% and 2.35% respectively as tech stocks did well. The SPX was higher by 1.63%. Volume was higher across the board. It rose 5.25% on the New York and 11.57% on the Nasd. That combined with the price gains was enough to produce a follow through on all the major averages. Leading stocks did well also with the leaders index gaining 3.09% on the day. The index closed high in its trading range on lower but still above average volume. The market put on quite a show today. The early weakness made it look like the market would continue its recent action. The Fed announcement was about what was expected and the fac that it wasn’t worse removed some uncertainty and cause stocks to move higher. Tech and quality growth stocks were strong and that helped the Nasd averages. The real question was how solid this follow through is. The fact that it was triggered by a fed announcement is a cause for some concern. It was also poorly confirmed. The weekly Coppock is not in a position to signal and so will not confirm. There was no Eureka signal today, but one could still come in the next few days. The only indicator that confirmed was the %E’s, as they are in range. Today’s action may turn out to be little more than a relief rally. The next few days will tell us that. There is a lot to be skeptical about in this follow through, but it could work. Approach it gingerly. I started work on a new leaders index but I am having a hard time coming up with enough stocks. Hopefully I will have it done tomorrow. Jerry
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