The rally finally ran into some selling yesterday when the indexes all reversed on much higher volume. The evaporation of a big gap-up open and ensuing rally that saw the Dow Jones Industrials Index briefly clear the 26,000 level was attributed to a possible government shutdown as Democrats refused to play ball with the Republicans and pass a stop-gap spending measure.
Of course, in this market, if you don’t like the action on one day, just wait another day. As I tweeted yesterday during the reversal, that was the last pullback to buy before Dow 30,000. I was only half serious, but I seemed more than half right today as the indexes resumed their merry rallying ways, and the Dow closed decisively above 26,000.
And as the Dow cleared the 26,000 milestone, the NASDAQ Composite Index made a run for its own milestone of sorts, but fell just short of the 7300 price level. Volume was lighter on the NASDAQ, but still above average.
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