As mentioned yesterday, it’s the day after the Fed’s announcement that usually gives a better indication of the market’s next move.

Thursday’s reversal from lows on heavy volume tells us UP is going the be the path of least resistase.

We also had a legitamate Follow Through Day (FTD) on the Nasdaq as it rallied 1.7%. Remember, a FTD must happen after four days of a market low with one of the major indexes advancing at least 1.7%. The Dow and S&P 500 put in moves that were almost 1.7%.

Toss in aggressive rate cuts from the fed and a government stimulus package on the way, there’s lots to be bullish about right now. Think, if the market can’t rally now, when could it?

While a near-term rally may be in store, it may also be short-lived if strong leadership doesn’t step forward. More on this in our weekly report.