The Fed's (surprise - (GS did mention yesterday that Fed could act before next meeting)) announcement triggered a strong reaction in pre-market trade and a gap higher open. Three plus hours of backing and filling began shortly after the open but the 62% Fib. retracement of the run off of yesterday's low to the opening range high (ORH) held in early afternoon trade with the market putting together an aggressive extension into the close.
Leading US markets higher were Bank +10.1%, Housing XHB +7.9%, Broker +7.3%, REIT +7%, Chemical +5.8%, Coal +5.3%, Oil Service HOLDRs +5.2%, Clean Energy PBW +5.1%, Commodity (DBA +4.4%, DBC +1.5%), Casino +4.5%, Gold/Silver +4.5%, Insurance +4.2%, Oil +4.1%, Paper +4.1%. The aggressive reversal was accompanied by above average volume and a strong up/down volume ratio (NYSE 9-1, Nasdaq 7.75-1) which suggests that a short term bottom is in play with the indices for now, at least, back in the Jan/Feb range trade mode.
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