Will Bearish Sentiment Continue To Erode?

The market is slightly lower in the first hour of trading. But financials are fairly strong, which is a good sign. The bank index (BKX) is close to breaking out to a new high of its own.

Volume was good yesterday, which made for a nice accumulation day on both the SPX and COMP. I think most investors believed the market would pull back coinciding with the FOMC meeting, since it had been up so much going into the meeting.

But the market rallied hard leading up to the announcement, sold off for a bit afterward, but closed at strong levels. Bullish action. They say one of the characterstics of a strong market is that it does not offer those on the sidelines good opportunities to get in. Eventually they have to step up and pay to play.

Bond yields are lower again today, with the 10-year down to 4.70%. Inflation? Nope.

In other news and notes:

• BBBY reported in-line earnings and revenues
• YHOO looks at buying Facebook
• WMT offers generic drugs for $4
• GIS beats estimates; stock gaps higher
• TSCM featured in IBD
• FDX beats estimates; stock lower
• GYMB raises guidance; stock gaps higher
• CRS announces $250M buyback
• BRCM added to Top Picks list at FBR
• INSP gaps lower on loss of large customer