The indexes finished with solid gains Wednesday as they built on Tuesday's mediocre bounce. Breadth was very good at around 6,300 gainers to 1,750 decliners. There were around 100 new 12-month highs, compared to 85 new lows, which reflects the fact that indexes are well off recent highs and have bounced well off recent lows.
The action was much more correlated with the indexes, which tends to happen when the Fed takes center stage. There was a little volatility on Fed Chair Jerome Powell's press conference, but nothing major, and the indexes ended up about where they started when the news first hit.
The major shift I saw Wednesday was a cooling in the speculative action. There were still some decent pockets of movement, but it was not as active as on Tuesday. Cryptocurrencies bounced back, which provided some trades, and cannabis names finally had a little better sentiment, but the junk de-SPACs struggled, and the social media-driven short-squeeze trades were mainly a bust.
The market is now a little extended following the bounce off the Monday lows. We will soon see if another V-shape move is in the cards, or is it possible that we experience a more traditional pullback and possible retest?
Have a good evening. I'll see you Thursday.