Stocks Rally, Oil, Gold Fall, Fed Leaves Rates Unchanged

DJIA + 331.62, +2.94% SP500 + 35.87, +2.87% NASDAQ Comp. + 64.27, +2.81% Russell 2000 + 16.90,+2.40% NYSE NASD Advancing 2,365 1,960 Declining 709 909 Oil $119.17 -$2.24 Gold $886.10 -$21.80 $SOX 350.33 +10.63 Strongest Sectors: XLF +5.08%...XLY +4.46%...XLV +3.25% Weakest Sectors: XLE +0.53%...XLU +0.82%...XLB +1.16% The markets were strong from the open rising for the first two hours and then leveling out until the FOMC announcement at 2:15 ET. Once the announcement came out, no change in rates, just as the market expected, the typical Fed announcement intra-day volatility jumped up and down for a few minutes and then rose strong into the close. Look at an intra-day chart to see the pattern. The market was so strong that even the Weakest Sectors were up today. Advancers led decliners 3 to 1 on the NYSE and by 2 to 1 on the Nasdaq. The Sox moved higher for the second day in a row which gives underlying strength to the Nasdaq move. Oil fell further down $2.24 and gold dropped $21.80. The new chart target for oil is $98.50. We have changed our Short Term Trend status to Up due to the support bounce and the break through short-term resistance levels. We’ll change our Intermediate Trend when the markets break above intermediate resistance levels. Index Commentary The DJIA formed a bullish engulfing pattern that engulfed the prior three days and the five day pattern candle pattern is a rising three methods…support bounce in a higher low bull flag pattern…closed above 20 and 30 DMA…nearing 50 DMA…if today’s break above 11, 600 holds the new chart target is 11,951. The SPX formed a rising three methods candle pattern…this is a trend continuation pattern… closed above 20 and 30 DMA…if today’s breakout of 1,284 holds the new chart target is 1,321. The Nasdaq formed a new high close today as it closed above it 30 DMA and near its 50 DMA...formed a large white candle the mid-section forms an S1 short-term support level...a successful break above 2,350 would give a new chart target of 2,525 The RUT formed a new high close since breaking down through its head and shoulders neckline in June…formed a large white candle…broke above the falling resistance line of the pennant pattern that has been forming since July 23…closed above 50 DMA and just below 200 DMA…watch for a break and hold above the 200 DMA…if a successful breakout of the 200 DMA occurs that will be a major shift of the overall tone of this index. Earnings Watch Monday AMC / Tuesday BMO Earnings Moving Up: PFG, EXPD, LEAP, MGM, PG Monday AMC / Tuesday BMO Earnings Moving Down: APC, ADM, JRCC, MVL Tuesday AMC Earnings Moving Up: CSCO Tuesday AMC Earnings Moving Down: PCLN -$17.99 Stock Commentary In our audio commentary last night and in our first post this morning we mentioned NIHD +1.66, WLP +1.48, LNCR +18 cents, SYNA +3.23 and NSC +2.79. RIMM bounces above 30 DMA in a 2-day pullback bull flag pattern AMZN bounces above the high of the low day in an earnings bull flag pattern...closes above 50 and 200 DMA MA formed an inside day at its 200 DMA X formed a bullish harami and inside day following a 100% retracement from an earnings gap up CELG formed a morning star pattern after a 2-day pullback bull flag pattern bounce today SCHN formed a bullish harami after breaking below its 200 DMA yesterday...a counter trend move GS formed a hammer bouncing off of its 20, 30 and 50 DMA in a sideways trading range BA formed a large white candle on a support bounce through its 20 DMA to close at its 30 DMA...appears to be forming a W bottom pattern with a bullish divergence in the 2-line MACD AIG bounced above its 30 DMA after forming a higher low W bottom pattern UAUA formed a new high close after 2 weeks of consolidation breaking out of a horizontal bull flag pattern ESRX formed a hanging man pattern BRCM closed above its 200 DMA in what appears to be a bear flag pattern after gapping down on earnings Monday’s Action Moving Up: AAPL, MA, CECK RIMM, PCLN, AMZN, X, CELG, STRA, GS, SCHN, LEH, MER, MS, NIHD, GRMN, UAUA, IBM, MOS, ESRX, V, RBCM, NUE, EXPE Moving Down: CF, POT, CLF, FSLR, IPI, USO, CNX, ANR Intermediate Term Market Trend: Neutral Short Term Market Trend: Up