Jerry Samet
08-09-2011, 11:31 PM
The market began its snapback rally today. The Fed announced that they would keep interest rates near zero for the next two years. It seems the federal government is about out of bullets and will merely use interest rates to fight an economic slowdown or recession. There isn't much else they can do at this point. The market closed on a strong rally but the 250 point move in the Dow and about equal moves in the other major averages in the last 20 minutes looked a bit strange. Volume was lower than yesterday but still very strong. The leaders rose more than the overall market with the leaders index up 5.85% on lower but well above average volume. The quality of a bounce after a big selloff is very important and we will have to see what this one looks like. The major averages could easily rally back to their 200dma's which would be the first major resistance, but that it likely to be a good selling opportunity. Jerry