Even with a sell off in the final hour, it was a surprisingly strong day. We had very good breadth and decent volume with all major sectors up. I say it was surprising because there really wasn't any catalyst and technically the S&P 500 has been in a trading range.
We have had a history recently of strength on the day of the Fed interest rate announcement, which probably helped get things running. It didn't make sense for bears to try to get in front of the Fed and they stayed out of the way of the bulls even though there weren't any great expectations about what the Fed might do.
The Fed offered up some optimism but nothing else, and after one attempted squeeze higher, the sellers came in during the final hour. We still managed some good gains and technically the overall uptrend is still intact.
The action felt a bit frothy at times today and you have to wonder if we have some end-of-month manipulations contributing to the action. Nonetheless, there were some very big moves and some good opportunities for aggressive traders.
We have a deluge of earnings reports tonight and technically momentum remains very strong. The bulls have the upper hand and traders may becoming a bit overconfident. Keep on plugging away but don't be shy about locking in some gains.
Earnings reports are hitting as I write. V is ahead and getting some steady buying but it's another solid report from FSLR that is causing real excitement. That should light up the solar sector tomorrow.
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