Stocks At New Highs Once Again!

FUNDAMENTAL ANALYSIS
After opening low on the 6.5% Shanghai stock market sell off, the Dow really recovered and rallied 111.74 points after the FOMC release. Investors are quick to realise that, if a 8.8% sell off in the Shanghai market lasts merely one day, then a 6.5% rally certainly wouldn't scare chinese investors into a sustained sell off. On top of that, the Feds have not only kept rates unchanged, they have also suggested that inflation risk is reducing. This again sparked hope for a rate cut in the (near?) future, sending all major indices flying. It seems like with the housing sector coming under control, everything else seems to start falling into place. Tomorrow, is another critical day with the GDP release just before market opens and will no doubt show it's impact on the pre-market futures. I suspect the bullishness will continue and will show up in the GDP numbers as well.

TECHNICAL ANALYSIS
The Dow has regained it's staircase formation again at last! This is the second time along this rally that the Dow has given us a bear scare. Once on 10 May and the other time on 24 May. With the Dow rebuilding momentum off the short term overbought region and a rising volume as support, I see this rally has more to come... let's enjoy it while we can.


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