Market In Rally Mode

Last week the market ended 12 days of weak, rangy price action and set new all time highs. The strong price action began on Wednesday with the Feds report on interest rates and its bond-buying program. If nothing else, the Fed provided more certainty for investors. The bond-buying was only mildly cut back, and interest rates are expected to be kept low for the foreseeable future. Also, revised GDP number of 4.1% growth help to provide for a strong market week.

The Nasdaq gained +2.9% last week. The S&P climbed +2.42% and the Dow advanced +2.96%. Moreover, the small cap Russell 2000 performed best with a +3.56% performance. The indices all began their runs after finding support at their 50 EMAs. The bullish market last week suggests the bulls are still in control of this market, despite the high risk of a correction. The market is is position to rally into the end of the year.