Wednesday, December 17, 2014

Russell 2000 Jingles Its Bells

The major indices saw a sharp Janet Yellen induced rally today despite a Federal Reserve statement that left many scratching their heads as to what the FOMC actually said (http://www.cnbc.com/id/102277397).  Nonetheless, today's action was quite bullish and some follow through or tight consolidation from here may get stocks moving higher again.

The Russell 2000 (http://scharts.co/1BUioi9) led the market today with a gigantic +3% gain on its highest volume day since the last week of October.  It should be noted that the Russell 2000 had a similar spike higher on December 9 and then sold off for the next five days.  While the price and volume action today in the Russell 2000 places it in a pending trend change, how it reacts tomorrow likely determines how this index moves through the end of the year. The other major indices had similar volume moves with percentage gains closer to the +2% level.

So just when it appeared the Grinch would steal Christmas, the stock buying minions (with some help from Janet Yellen) stepped in to save the day.