Bulls had a good session Wednesday aside from some late afternoon rumblings around the U.S. Senate foreign relations panel passing authorization for use of military force in Syria. Stocks rallied from the morning on after a quick dip in the opening moments. The Fed released its beige book analysis of economic activity and there was nothing there to suggest QE tapering won't be happening. The S&P 500 gained 0.81% and the NASDAQ 1.01%.
The U.S. economy expanded at a "modest to moderate" pace in most of the country between early July and late August, according to a Federal Reserve's Beige Book, its region-by-region assessment of the economy.
The S&P 500 and NASDAQ continue to diverge significantly - the NASDAQ acting much better. With the S&P 500 there has been a battle at the 100 day moving average of late, and now there is a decent push over it. If this index can get back over the key 50 day moving average and stay there, it would be an advantage for the bulls. A move over 1670 to create a new higher high would be a first step to a new leg up.
Meanwhile the NASDAQ has poked its head out of this downward channel - for the third time in the past month. The previous two attempts have led to immediate reversals and with Friday's jobs data coming soon we should see a strong move one way or the other.
Today's breadth was very good - in fact the third best in about 2 months.
Meanwhile the NYSE McClellan Oscillator went back to positive for the first time in over a month.
It was a good day for automakers as they posted excellent August sales:
Ford Motor advanced after the automaker posted sales that climbed 12 percent from a year ago, logging its best month since August 2006. General Motors also rose after the company posted sales that jumped almost 15 percent.
Review site Yelp (YELP) which has been a favorite of Wall Street due to its growth metrics in the mobile internet, had a strong day today.
Also the biotech sector, which has been a star all year, is almost already back to 52 week highs.
For those seeking potential shorts, you can use days like today to find non performers - Pandora (P) is a great example of a name with a defined ceiling from which one can set a stop loss.