Nasdaq Puts In Outside Day
The market was able to hang on to its gains from this morning's reversal. The SPX tried to make it to new highs, but wound up closing just below the 1310 resistance level that has acted as a ceiling since mid-March.
The COMP also closed off its intraday highs, but the action there was a little better, as that index did put in an LROD (large-range outside day) reversal. Volume rose on both exchanges, making for an accumulation day, even though the percentage rises were modest.
Looking under the hood a bit more, breadth was actually negative, whichisn't very encouraging. But the drop in energy as well as the reversal in yields (thanks Ben) helped light a fire under stocks.
Bernanke's comments really sparked a rally in the financials, with the BKX surging to new highs. Biotechs also rebounded strongly, while commodities and energy stocks were down the most.