Hard to say the markets responded to the Feds dovish stance on raising rates as it higher going into the release at 2pm. Benchmarks did finish the session nicely higher, tacking on further gains with the Dow alone putting on an additional 100 points, as the Nasdaq did manage to recapture its 50 day SMA it lost Tuesday and managed to basically eliminate its weekly loss going into Thursday. It gained 2.1%. The S&P 500 recaptured the big round 2000 handle and jumped 2%. It is now positive by .5% on the week. Volume was not as energetic as bulls would have liked. Indexes ignored a weak earnings release from a normally very important transport, FDX. The stock slumped almost 4% undercutting its 50 day SMA in the process. Perhaps investors shrugged it off as a one off event as the stock rose 3.3 and 6.2% on 9/17 and 6/18. The holiday season obviously is not factored in this report and market participants were looking for a solid report next time around after gas prices have surely put capital into the consumers pocket to spend. For the second consecutive day energy and materials were the first and second best performers as risk back on is back in play at least for the moment. Has the Christmas rally just begun? Bulls have to recognize that within bearish environments will be some of the strongest rip facing rallies. Is this one of them? Time will tell.
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