Moves that occur on the day of Fed actions tend to be unreliable indicators of future direction. This time may be no different. Nevertheless, the market reacted very positively to the rate cut. The Nasdaq broke out to fresh highs on solid volume and the S&P and Dow cracked their upper Fibonacci retracement barrier, which was pretty much the last line of defense for the shorts.
It now appears quite likely that the broader market is going to retest this year's highs. Given the momentum behind the tech sector and the continued skittishness of the crowds, it appears likely that the highs will be taken out at some point before the year is over.
This is typically the most bullish time of the year, so put your trading caps on.
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