The markets were higher today, but only because of an opening pop. After the opening, the market drifted down for the remainder of the day. This shouldn't be surprising. After yesterday's post-Fed rally, it's understandable that traders would back away from the market a bit.
Also notice we have two gap ups -- one that occurred right after the rate cut, and another that happened at today's opening. That's a lot of technical real estate.
Looking at the 8 day picture, we see the rally that started 8 days ago, followed by the formation of a base while the market waited for the Fed, followed by a big jump after the rate cuts. Notice that after the rate cuts we see a ton of volume but that today's volume was a bit weaker.
The daily chart shows the market pulled away from it's trading range but now looks over-extended. We had a big move yesterday on heavy volume, but today's follow-through was not that convincing. Today's bat printed very weakly and the volume was not that impressive. I wouldn't be surprised to see the market drift lower for the rest of the week to catch its breath.
