Stocks rallied yesterday, but the total volume, although relatively heavy, was muted compared to the prior two days. The NASDAQ composite closed strongly at 94.24% of its daily range, but was unable to get back above the 4100 level and closed at 4097.96. The lack of volume compared to the prior two days where extreme selling pressure was evident shows that the bounce did not have the conviction that the sellers had the prior two days.

The question is was yesterday just a dead cat bounce with more selling to come? The futures rallied sharply after the market closed yesterday on news that the Turkish government had raised interest rates which gave hope for a rebound in the emerging markets. That rally faded overnight and stock futures have turned decidedly negative. Today the markets have to deal with the Fed statement later in the day which will more than likely add to intraday volatility, and of course, earnings are going to affect the market. Yesterday, Apple was the victim of an unfavorable outlook going forward, and after the bell Yahoo disappointed.