It was a wild session that ended weak. The major averages opened a bit higher and traded around unchanged until the Fed announcement and things got volatile. The major averages went to solid gains as the Fed dropped rates 50 basis points. After swinging wildly the major averages all ended low in their intraday trading ranges. The COMPQ and the NDX lost .31% and .45% respectively. The SPX lost .29%. Volume was higher across the board, producing a new distribution day on all the major averages. Leading stocks closed moderately higher with the leaders index gaining .56% and closing low in its trading range. Volume was higher and the relative strength line of the leaders index made a new high. The market traded mildly positive until the Fed announced a 50 basis point cut and then traded wildly in both directions before closing weak. The NASD averages remained above their respective 50dma’s and must hold this support level. At this point I really don’t know which way the market is going to go in the short term. There are indicators pointing in both directions. The rally is still in effect, but it isn’t lighting any fires. Right now just be careful and keep your positions on a tight leash. Jerry
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