It was a wild and crazy day today as we expected.  Some post-FOMCextreme volatility did occur.  The Fed lowered their rates by a quarterpercent and the first reaction was a very sharp setback.  That setbackheld support, particularly on the S& P 500, where key support overthe last few days have been 1530.  They reached 1529-30 and reversedsharply, running all the way back up to 1553 inside of 35 minutes.  Anear 50% retracement held intraday moving average and price support,and they came on strong at the close.

The Dow closed up 137.50,which was about 165 points off the low.  The S&P 500 was up 18.36,20 points off the low.  The Nasdaq 100 closed near 2239, up 31, areversal of about 40 points.  So, a very strong post-FOMC reactionafter an initial sharp drop.  

That resulted in some strongtechnicals, with the NYSE advance-declines 3 to 1 positive.  Nasdaq wasa little less than 2 to 1 positive. Up/down volume was nearly 4 to 1positive on New York with just under 1.6 billion.  Nasdaq traded 2 1/2billion, and had a 3 to 1 positive ratio.

TheTechTrader.comboard was strong, but there were some issues on both sides.  Thelargest gainers today were the snapbacks in the shipping group, withDryShips (DRYS) up nearly 10 points, up 9.86, at 117.86.  ExcelMaritime (EXM) also snapped back sharply, up 6.68, as did TBSI, up 3.79today.  Tech stock SIRF on terrific earnings & raised guidancejumped 6.51 today on 11.8 million shares.  Other multiple point gainersincluded Aluminum Corp. of China (ACH), up 1.81.  Global Solutions(GSOL) snapped back 1.32, Home Inns & Hotels (HMIN) 1.82 all in thestrong Chinese sector today.  STV was up 1.06, and VMware (VMW)  alsogained 4.48 today.

Other significant movers included the XLE,the energy sector ETF, up 1.86, as crude oil set an all-time high todayat 94 1/2, up 3 1/2 today.  Gold, in aftermarket electronic trading,was up over $800 an ounce today.

On the downside, there weresome losers, with FLML getting hammered for 1.93. The QID dropped 1.05, SDS 1.15 and the DUG 1.48, all ETF short instruments.

Steppingback and reviewing the hourly chart patterns, the indices, particularlythe Nasdaq 100, exploded to new multi-year highs, and closed near thehighs for the day, year and multi-year in a very strong post-FOMCreaction.  The S&P 500, however, though it did reach up to 1553,closing at around 1549, is still substantially below the October peakof 1577.  So we have a long ways to go there to confirm the Nasdaqgains. We always wait to see within a day or two after the FOMCannouncement when usually the true trend of the market will assertitself.

We'll see if they can continue to push them higher, orwhether they move towards a retest of key support, which is now in the2190-95 zone on the Nasdaq 100 and the 1529-30 area on the S&P 500.

Those are the areas we'll be keeping close tabs on the remainder of the week.

Good trading!