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The day after nearly testing 8000, the Dow came back and rallied above 9000, closing at 9065.12! The market was weak in the morning, but rallied hard in the last hour. Strength was seen across the board. Even commodity-related sectors went higher. Financials lead the pack: JPM +10.59%; WFC +11.77%; BAC +12.13%; PRU +13.18%; STT +17.15%.
After the market APOL reported a quarterly profit that more than doubled from the year before! APOL shares went up +5.32% in AH trading, on top of the +9.83% gain earlier today. ESI also reported well last week, and, should go higher from here.
The Dow was up +889.35 points; SPX jumped +91.59 points; Nasdaq gained +143.57 points:
Most sectors captured solid gains today. VIX closed below 70. XLF (financials) lead the market with +15.77%. XLE (energy) added +15.25% and XME (metals and mining) gained +14.53%. Even USO (oil) closed higher! FXI (Chinese ADRs) jumped +20.03%!
SPX
SPX jumped +91.59 points to close at 940.51. It closed above the 10-day MA and the 900 level. The MACD is just showing the start of a bullish crossover.
Nasdaq
Nasdaq added +143.57 points to close at 1649.47. It closed just below the 1650 level, but, above the 10-day MA. The MACD went up.
Yesterday, in my evening post, I showed the weak technicals on the market. I also said, "[The market] will need a big, substantial rally to overturn the 10-day MA." Well, was this it? The market indices did close above the 10-day MA. But, all this did was get us back to where we were before, dealing with SPX 900 and Nasdaq 1650. Both indices now are showing possible, bullish crossover again, which we've experienced last week. VIX is still above 60. Skeptism seems to be on the market about this rally. Perhaps the market has been "crying wolf" about the bottom (or, should I say "crying bull"?) too many times lately. The market could probably carry this upward momentum into the morning. Then, things will likely get volatile before and after the Fed announcements. The market will need to show a follow-through and perhaps close above the 20-day MA to make a difference this time. If not, we're back to "crying wolf"; or was that "crying bull"!?!
Good night and HappyTrading! ™
