The NASDAQ Composite Index powered to an all-time high yesterday, and looked set to do so again today. But a strong rally that held up even after the Fed announced another quarter-point increase in its Fed funds target rate gave it all up into the close as the index ended in the red, down -8.09, or -0.11%, on higher volume.
But, as I noted in a tweet earlier today, and ahead of the Fed announcement, things were getting a little piggy on the upside, hence a pullback became more likely. As Jesse Livermore would say, “Action, reaction, action, reaction,” in that every upside move brings with it a natural reaction to the downside as the prior upside move’s excesses are worked off.
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