Stocks continued their September rally; the S&P 500 has had only 1 down session all month. Tomorrow is the Fed announcement day and whatever is said we are entering the afternoon announcement and news conference extremely overbought short term. There have been only 2 real days of rest in this rally late last week. So aside from the normal volatility tomorrow the potential for a quick downturn is heightened. Expectations for tomorrow are anything from no reduction in quantitative easing to "$10 to $15B a month". As for today we have returned to the market we saw in July which we called "gap and nap"... a push at the open, very little movement the rest of the day. The S&P 500 gained 0.42% and the NASDAQ 0.75%. Small caps also had a good day with the Russell 2000 up 0.96%, we will show that chart tonight.
Inflation continues to not be on the radar for the Fed. Consumer prices ticked up 0.1% in August as the cost of energy fell, according to the Labor Department.
We have breakouts on the S&P 500 and NASDAQ, the former is just below early August highs.
The Russell 2000 today broke over those August highs joining the NASDAQ in yearly high territory.
That said this has been a near vertical move and the NYSE McClellan Oscillator is very overbought. Positive readings are good, but extreme positives in mid 50s and above usually lead to near term selling pressure, if even for a day or two.
We'll look at some big winners today using MarketSmith charts. Speaking of having great months, retailer Whole Foods Market (WFM) has been up EVERY SINGLE day of the month.
Yelp (YELP) came back to its 10 day moving average and bounced sharply today. A 99 RS reading.
3D printing stocks have not been as strong as some other groups, but today was a big day for the group - below is Three D Systems (DDD)
Casinos continue to do very well - here is Caesars Entertainment (CZR)... it is very overbought in the intermediate term but continues to impress. It's relative strength reading is a stellar 99.
And we can't do a recap without mentioning one of the four horsemen of this market, Facebook (FB) was again stellar after a shaky session yesterday where it closed on its lows and looked to do some technical damage. Not so much.