Correction Ends on Volume-driven Market Advance

Today, new Fed Chair Janet Yellen spoke before congress and her tone was apparently reassuring to the market. She indicated that interest rates would continue to remain low and that the bond buying program would be decreased in measured steps according to the performance of the economy. 

The market opened up and continued rising throughout most of the day. The Nasdaq climbed +42 points (+1.03%) while the S&P rose +19 points (+1.1%). The Dow closed up +192 points (+1.22%) with the best percentage move of the market indices. The small cap Russell 2000 was the weakest with a +0.93% gain. 

Volume was above average on all three major indices which makes this a strong institutional buying day. The advancers beat decliners by a 2.5 to 1 ratio and up volume was greater than down volume by a 5 to 1 ratio. There were 194 new 52 week highs compared to 36 new 52 week lows. The S&P closed strongly above its 50 EMA and the Nasdaq has closed for 3 consecutive days above its 50 EMA. 

The leading Nasdaq index has put in 2 days (7 & 11 Feb) where the market advanced more than 1% on strong volume. This, along with other market barometers, means the Correction has ended.