These increases are impressive. However, I think there are two reasons that explain this behavior. On the one hand, the fall of the market over the last two weeks was very violent. It also generates the rebound is important. On the other hand, the Fed's announcement also helped the market, but also generated a lot of volatility.
Perhaps, this day the market began way back to major resistance levels. For the DJ-30, this first level is at 1,555 points. In the case of SP-500 is in just the level at which closed yesterday, but given the circumstances, the next level is at 1,250 points. Finally, in the case of the Nasdaq Comp., this level of resistance is located at 2,600 points. These three levels are very important and we must watch them closely. But we must also be attentive to the level of SMA50 days. I say this, because it is very common in a down market, the "bounce" come this level and then, restart the way down.
As you can see, there is a group of stocks that have the opportunity to rise significantly, giving the possibility to take long positions. Do not forget that this can be a very volatile and dangerous way. Yesterday, many stocks rose dramatically, but very few of themshowed a pattern that allows to take position. We hope to see this to be bound (or not) in the following days. In my section "Free stocks trend up" I will present in some stocks that are in good shape to continue to rise. The same, so if the market "turns," I will give my opinion on stocks that have the best chances to lose more. Please Click on the chart to enlarge.
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