Major averages budged little on mixed volume though the small cap Russell 2000 made a new intraday high on higher volume showing the speculative flavor in the current environment since the Fed gave the green light on keeping the current levels of quantitative easing, the Syrian crisis easing, and Janet Yellen becoming a Fed frontrunner who is perceived as dovish. The larger-cap indexes, the NASDAQ Composite, S&P 500, and Dow all reversed and closed much weaker after rallying earlier in the day. Thus the market had the overall impression of a reaction bounce after two days of selling on Monday and Friday.
Facebook (FB) gapped up on favorable analyst comments and an upgrade, but buyers beware. If it is a true leader, it should go higher from here, but the gap up on an upgrade after having a substantial run could easily get undercut. Conservative investors may wish to see a second buy point in the form of a pocket pivot.
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