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The Rally Has Legs! And Arms, Too

It was hairy for a while, but techs, financials, and consumer discretionary—last week's market leaders—were the catalyst for today's late-day rally.

This was an important rally. Why? Because yesterday's late day selloff, which occurred on a surge of seller volume, made it look like this one-week rally was running out of steam.

For much of the day, today's action looked like yesterday's: stocks move up throughout the day, financials and techs are the leaders, then start selling off right around 2 PM ET.

That's where the comparison stopped. Unlike yesterday, today's midday selloff did not have much seller volume behind it, consequently it began dying very quickly. When traders saw this, around 3 PM, they began putting money into techs and financials.

The rally so far

Transports up 20%

S&P 500 up 16%

S&P Midcap up 16%

Russell 2000 up 17%

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