Video Stock Market Technical Analysis 8/17/07

Pre market, the S&P 500 futures contract was down 25 points and then at about 8:15 AM Eastern the Fed came in and saved the day by cutting the discount loan rate by 50 basis points. The market has been expecting a “surprise” move from the Fed and today it got it. What was impressive is that the gains held and the market closed near the highs of the day. Yesterday’s huge volume signaled a continued upside move, but with the 50 day moving averages still heading lower stocks should be exited again at the first signs of weakness on the short term timeframes.