The market staged a nice rally today. The major averages opened higher and mostly worked their way up the rest of the day. Late buying saw all the major averages finish near their intraday trading highs. The COMPQ and the NDX gained 1.58% and 1.42% respectively. The SPX rallied 1.30%. Volume was lower across the board, showing a lack of buying pressure before the Fed announcement tomorrow. Leading stocks had a strong session as well with the leaders index gaining 4.30% on the day. The index closed high in its trading range on lower but above average volume. The index cleared its 50dma as well as the short term 9 and 17 day moving averages. The market stages a solid rally ahead of the Fed announcement tomorrow. There was strong action across the board, but the volume was lower again. This is two rally days in a row on lower volume. This is something to watch. The SPX regained its 200dma yesterday and is now right below its 50dma. The tone of the market has improved in recent days. The bank issues seem to be receding and this is bringing about a rebound in financial stocks. The Fed announcement is tomorrow and that will set the tone for the market. It looks like 25 basis points is baked in, but the news conference is always a wild card. If the Fed leaves rates unchanged it will likely spark a rally and possibly a follow through. We will have to see what the announcement is. Jerry
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