The early failure resulted in an almost 2% quick drop testing the 200 day moving average, then a very quick bounce back. The wild action post FOMC continued after a weak unemployment report and the International Energy Agency announcing intent to release 60 million barrels of oil from its strategic stockpile. That sent crude oil tumbling along with many commodity names.
The dip buyers started buying retailers and some big-cap technology names that are sensitive to lower gasoline prices. The bounce started to fade when news hit that Greece had reached a deal on austerity measures. The market leapt higher on the news and closed strong. We have held above the lows of June but there’s strong overhead resistance.
Russell indices are rebalanced tomorrow and may contribute to more wild action. ORCL is down about 4% so far after earnings but the QQQ is trading flat after hours. With today’s bounce we have to again consider the possibility of a month end bounce or summer rally after the recent choppy trading.
