Up until 2:15 EST we had a real doldrum session, but optimism over the FOMC Statement sparked a late day vertical rally. Participants took the Fed comments to mean the tightening bias was dropped (What about the possible sub prime fallout???). The NASDAQ rallied up to its 62% Fibonacci retracement level and closed near its highs. What a difference a day makes. Yesterday, the P&F chart indicated a triple top breakout (double bottom breakout in layman terms) with a new target of 2680. Today's session added 48 points and put us in the overbought zone. I expect we will consolidate this move in the coming days before attempting to break through the bearish gap resistance from last month's breakdown.Economic Calendar: Initial Claims 8:30; and Leading Indicators at 10:00 EST.
3 comments:
Jamie,
Why is the market so pumped. Is the volatility over?
Vivek
Jamie,
ASTI
vivek
Hey Vivek,
Good call on ASTI. Nice entry on a break of the morning consolidation. I did not check the blog today, too busy trading. Did you trade it?
The market is pumped over the FOMC. As indicated last night in this post, the market consolidated yesterday's big move and may continue to do so tomorrow.
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