Trading From Main Street

[Toni Hansen]

The day went pretty much as planned... The nice thing about events like the Fed is that they are so predictable... We did see our rally in the morning, then a slowdown over noon. After the announcement of a 25 basis pt cut the market dropped sharply, no doubt because it was the lower end of expectations. The counter-swing was even more severe though, this is also not uncommon, and gained back all that was lost. Then with the price resistance over noon the market broke down once again in the direction initially indicated after the annoumcement. This was more evident in the S&P as the Nasdaq held up better in the last move, closing pretty even ont he day while the S&Ps were down slightly.

I've been debating what to make of the action over the past week. As those who talk to me in other arenas on the web know, I did not think the last drop would be steep. In fact, it wasn't, ending yesterday. I think we could actually see some upside again here because weekly support in many stoicks is pretty strong. The market just has CCI (Commodity Channel Index) resistance to break and it's been testing that for awhile here on the daily so can now break it more easily.

Take care everyone and I hope the Fed. was good to you! :)
Toni Hansen