The SPYs opened lower then gapped down hard on heavy volume. But they consolidated there and moved higher over the rest of the session. The only negative on this chart is the possible double top. But there is a ton of news between today's close and tomorrow's opening.
On the six day chart, notice we're still below a long-term (5 day) trend line. However, if the index can break through this line and hold above it tomorrow, it could indicate a trend reversal from the post-Fed sell-off.
The QQQQs followed the same path as the SPYs, with the exception of a strong gap upwards when the index started to rally.
On the six day chart, notice the QQQQQs are a bit further below the 5-day downward sloping trend line.
This is the strongest chart of the day. Notice the IWMs had heavier volume on their rally and closed with a solid volume spike and strong bar. These are positive developments.
On the 6 day chart, notice the IWMs have already broken through the downward sloping, post-Fed trendline. This is another good development.
Now, the big question for tomorrow is this: will the markets follow the Russell 2000s lead and break through their trend lines?
