Posted on September 19, 2008 - by andrew

Market Recap - September 18th, 2008

The markets made huge gains yesterday after a volatile start:

• NYSE: +4.5%
• S&P 500: +4.3%
• Dow: +3.9%
• NASDAQ: +4.8%

Stocks started off positive, then went negative….all on mixed volume. The exciting action happened around late in the session when good news about the credit crisis came out causing:

1. Surge in volume
2. HUGE gains in a short amount of time

This occurrence was very different compare to other sessions we’ve seen:

1. That surge in volume caused the volume for the day to exceed the already high volume we’ve seen in the last few sessions.
2. The way the markets reversed into huge +4% gains in such a short time was very impressive.
3. Many leading stocks that were negative and had quiet volume most of the day ended up with big gains on above average volume.

Wait!!! We aren’t out of the Correction yet…

Yesterday was just an encouraging sign. It only marked Day 1 of a rally attempt. Many might be salivating seeing some stocks on their watch lists make solid gains yesterday. According to Investors Business Daily, you have to keep cool and wait for a confirmation day of the rally before you start buying. Don’t worry, there will be plenty of stocks breaking out if the rally is for real.