Click on chart for larger view.The Nasdaq put together quite a remarkable reversal day following the release of the FOMC minutes, despite the uninspiring early morning trade. After gapping up 10 points off of the open, the Nasdaq pulled back well below Friday's close, thus filling the gap from Friday's action. By mid-morning the Nasdaq was down to 2189, carving out a bearish engulfing pattern. However, although this was clearly a lower low, the RSI was showing positive divergence from Friday's low on the shorter time frame. Needless to say, if you took a position at or near the mid-morning low, you were paid off handsomely by the end of the day. Expect the market to digest these gains tomorrow.
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