Just a quick update on last week’s post noting the high and tight downward-sloping handle (in indexes and stocks).
Today (December 16th), we got the upside breakout/follow-through, and it came on increased volume, but the volume was below average, which is a question mark, perhaps the kind of question mark that leaves some doubt/worry, which is what can sustain rallies.
The news of the day was the U.S. Fed cutting continuing to push on it’s little string, cutting its Fed Funds target rate to a record low 0% to 0.25% (Washington Post article and LA Times article). Now that it’s out of bullets there…
…it’s left to quantitative easing (Bloomberg article) and other measures (fiscal and monetary). Cheers!
PS: Here’s the most optimistic blog posting I found today: Next stop 10400 Dow and 1040 S&P.