The market staged a nice rally one day after the Fed decision to cut rates 50 basis points. The major averages opened higher and moved to strong gains. Some late selling caused the major averages to finish off their absolute highs. The New Tork averages closed high in their intraday trading ranges while the NASD averages finished in about the middle of their trading ranges. The COMPQ and the NDX rallied 2.51% and 2.56% respectively. The SPX rallied 1.70%. Volume was mixed, higher on the New York and lower on the NASD. Leading stocks did well also with the leaders index gaining 1.31% on the day. The index closed high in its trading range on lower and below average volume. The market had a strong rally today, in an apparent delayed reaction to the Fed’s rate cut. The major averages showed strong price gains and volume was higher at least on the New York. I have been a little unsure about this rally, but today’s action adds to the positive narrative. The New York averages made new highs and the NASD averages moved higher above their respective 50dma’s. The action today improved the picture, reversing yesterday’s questionable action. The market acted well today and leading stocks are acting pretty well. It is unusual for a successful rally to start during this time of year but this one is looking better. Jerry
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