And The Rally’s Over

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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.

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