Note: There won't be a watchlist tomorrow morning. I'm going to take advantage of the Fed day and the little heat wave we're having (new highs!) in Atlanta to take a bike ride in the morning.
It's tough for me to read to much into this little rally today given that it came on light volume and it's the day before the Fed's interest rate decision. It just feels like sellers have stepped aside and the market's drifting higher in their absense. Given that it often takes a full 24 hours after a Fed decision to see where the market really wants to go perhaps Wednesday will be enlightening. It is interesting to note that the Nasdaq, S&P and Russell 200 have all climbed back to the vicinity of their 50-day moving averages. Normally I'd expect sellers to step up at the fiddies... maybe they'll still give it a shot once the big bad event is out of the way.
Charts of the Nasdaq and S&P 500 are below, along with the trend table:
One change today:
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up(+) | Down |
| Intermediate | Lat | Lat | Lat(+) |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Mike, looking back at the Fed decisions on Oct 30th and Sept 18th, and the days prior, it looks like you have that same declining volume. IMHO it's not necessarily a negative, it's just indecision and people waiting on the sidelines for the report from the Fed before committing capital to the markets. What do you think?
Based on short-term market breadth, I think we're due some profit-taking here, however, if we get the improbable 50 point cut, then we're off to the races again.