The market had a solid up day today. The major averages opened higher and gathered strength right into the Fed report. News that the Fed would not be raising rates any time soon accelerated the advance and all the major averages closed with strong gains and at their intraday highs. The COMPQ was up the most with a gain of 2.12% while the SPY was close behind, rising 2.04%. Volume was higher across the board(according to esignal), showing that there was buying by institutional players. All the major averages are also back above their important 50dma’s. Leading stocks were higher as well with the leaders index gaining 2.03%, about in line with the overall market. The index finished at it’s intraday high and it too regained it’s 50dma. Reactions to Fed announcements are often reversed the next day, so we will have to see if today’s action has legs or is just a flash in the pan. The next few days will tell us a lot. Today counts as the first day of a rally attempt so it will be three more days before we can get a follow through. Today’s action shows how difficult an environment we are in and how difficult it is to go either long or short. Until we get either a follow through or a break down that tells us where the market is going a defensive posture is probably a good idea. Jerry
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