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Thursday, May 1, 2008

Delayed Reaction, Part 2

Whatever traders saw in the FOMC decision yesterday, they must have changed their minds about it today, as the market rallied right through the resistance zone that I have pointed out and closed above 1406 for the first time since early January. A word of caution: IBD called yesterday a distribution day, marking 4 for the SP500 since this rally began.

The Nasdaq also logged a distribution day yesterday, marking 2 for it. Today it got a boost oh high volume. Most of the leading stocks in the IBD 100 were tech stocks on the Nasdaq.

The Russell rallied right into resistance at 731. This needs to get above, and stay above, about 735.

The dollar sold off after the FOMC decesion yesterday, but staged a reversal today. Trying to understand the logic of the markets is a futile task, but that won't stop me from trying. However, I must admit to being confused here.

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