The Stock Market

That was sure an interesting ride in the Stock Market yesterday; up and down about 600 points on the DJIA, and a possible reversal day to the upside. It looks like the move by the FED to drop interest rates by 75 basis points has added the positive element of confidence to consumers that the markets needed in the short-run. Technically speaking, a moving average analysis of 5 days, 9 days and 20 days would suggest that this rally could last a while in the short term. Just looking at the charts, it looks like there will be resistance at about 1400 on the S&P, and then again at about 1500 and finally at about 1576. Can we break through to new highs before the end of the year? That all depends on the many variables that must come into play, but it is sure possible under the right circumstances. What are some of the potential problems that will prevent this from happening? They include terrorism, unstable commodity prices, inflation, unstable currencies, and a lack of confidence by consumers, businesses and governments, world-wide, to efficiently work, consume and invest. I'm sure that the volatile ride in the Stock Market will continue, but the trend in the short-term appears to be up.