And The Rally’s Over
The rally that began at 1pm EST last Wednesday ended today at 3pm EST as investors sold the surge on the 50 point cut by the Fed (S&P 1 Day Chart, S&P 10 Day Chart).
It was nice while it lasted as we moved 115 points on the S&P (1270 to 1385) from top to bottom; 200 points on the Nasdaq (2200 to 2400); and 1000 points on the Dow (11,700 to 12,700).
This kind of intraday reversal, as always, is telling. It means that there’s a lot of sellers at the top of those ranges and not a lot of buyers.
Now we probably go back down and test the lows from last week.