A slap on Fed\'s face: loud and clear

What a roller coaster day - a 0.5 cut as the market expected, but the rally fell apart facing more bad news from bond insurers and SP downgrades.

The cut didn't save interest-sensitive sectors, such as the XLF and XHB, both were "leading" this rally. XLF's reversal came with 40% more volume and XHB's 5MA turned south with 70% more volume. Both are not encouraging.

XLY's reversal came with 50% more volume, and EEB's 5MA turned south but with 20% less volume showing some resilience.

GLD rallied to a new high with 20% more volume, but it clearly has bubbles and may top soon. Gold is widely expected to reach 1000 as the stock market eases, but I will be watching when it tops.

Nasdaq stocks with huge volume days are:

YHOO, HANS, FLEX, AMLN, CEPH, AMZN

Big volume IBD 100 stocks are:

RRC, PFWD, CTRP, TKC, ISRG, BLK

If the market does retest the last week's low, watch out for the downward volume and don't try to pick the bottom. Otherwise, I'd expect the market go upwards to finish B wave before dipping into a long bear market.