Starting at the begining of the day, Lehman Brothers and Goldman Sachs beat expectations while be it poor expectations. Thus prompting the market to open up, the excitment gradually built throughout the day until the Fed cut intrest rates down 0.75 points to 2.25%. This is a new low since late 2004! Accompanying the rate cut the Fed said “recent information indicates that the outlook for economic activity has weakened further,” but also that “uncertainty about the inflation outlook has increased.” So they are trying to keep our market a float, an just watching the inflation.
For the day, the Dow Jones gain 420 points which is significant as it broke through major resistance lines of the 5-day EMA, 20-day EMA and 50-day MA. The S&P and the NASDAQ also broke major resistance lines. Prior to the markets move today, many theorized a market bottom due to other technical indicators, including the VIX (volitility index) reaching a peak of 35. So what does the day add up to? We'll have to wait and see if we can hold a bullish rally for the next 2-3 days. If so, this indications a major trend reversal.
Just in case you are not already aware, the markets will be closed for Good Friday.
Interested in the technical analysis of Apple stock? AppleOption.com has a great write-up of what today's market move represents, the current resistance lines and guides members how to profitably trade!