R.C. Market Report 10.29

• Market Trend: Neutral

• The theme of today's trading was unexpected steadiness. I had expected some profit taking during trading hours prior to Fed announcement but the market not only held but added some to yesterday's gain. Even during few moments of selling, things seemed very steady. Then as the annoucement was made to cut the rate down to 1%, the following reaction wasn't volatile. We sold off on the annoucement but ever so gently compared to the type of action we've been having lately. The market made another move higher afterwards but got hit by a large selloff in the final ten minutes. But even that selloff, a combination of profit taking and an erroneous news out of GE, was tepid compared to the 1200pt rise since yesterday. I'm sure you can make a bearish argument with the late selloff and lack of volume today but I'm going to put a positive spin to it. I believe we'll move up from here. I don't believe yesterday was a fluke. A push up to end this week would be ideal for further bullishness.