Markets in rally mode?

The markets responded positively after the fed announcement this afternoon pushing the Dow back to all time highs. I wouldn't put too much stock into the fed reaction as these types of moves have a way of regressing to where they began. While todays move wasn't overly impressive, there were a few things that should have bears getting a little nervous. Volume was higher today, the Russell is attempting to breakout, the Transports are attempting to rally, the Dow made it to all time highs, and the S&P made multi year highs. I get nervous when everyone hops on the same train, but it looks likes the markets will rally here.


iShares Russell 2000 Index (ETF) (Public, NYSE:IWM)
Here is a chart of IWM which tracks the Russell 2000. It cleared the recent base and may breakout here.


NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)
Here is a chart of the Q's holding in the triangle. It's technically not a triangle failure until it closes out of the triangle, so the chart pattern is still valid here. I've been mentioning that the 44.20 area has been important and once again it proved itself as a congestion area.


Rambus Inc. (Public, NASDAQ:RMBS)
Here is a chart of RMBS pulling back into gap support. It looks like it may be turning back higher here.


Brocade Communications Systems, Inc. (Public, NASDAQ:BRCD)
BRCD continues to look good holding this rising trend line. It's holding near the 20sma and may get a lift if the techs bounce higher.


Daktronics, Inc. (Public, NASDAQ:DAKT)
DAKT is drifting back in a descending broadening wedge. Sometimes the stock makes a partial decline at the end of this type of base before breaking out, so I will be watching a decent candle to confirm the halt.


iRobot Corporation (Public, NASDAQ:IRBT)
IRBT looks like crap, but volume is coming in near the bottom of this large trading range. It looks like it may be bottoming out here.


American Science & Engineering, Inc. (Public, NASDAQ:ASEI)
ASEI is quite oversold and narrowing in range here. It looks like it started to turn up already.


Guess?, Inc. (Public, NYSE:GES)
GES broke out and made it's first pullback to the rising 20sma. This often provides a decent entry point for a stoke in a strong trend upwards.



Good Luck,


DT