After digesting the FOMC announcement, the markets opened very aggressively this morning. SPX gained $21, closing at a new record of $1707. RUT also set a new record high at $1060, up $15. Volatility dropped a half point to 13.0%. Trading volume dropped off a bit with 2.3 billion shares of the S&P 500 stocks trading. Trading on the NYSE dropped 5% and trading on NASDAQ  declined 4%.

The ISM manufacturing index came in at 55.4 for July, a two year high,  and up from June's 50.9. This added fuel to the bullish sentiment of this morning's market.

Many analysts were watching for the jobs report tomorrow as the next significant market moving event this week. So this extremely bullish day in advance of the announcement was a bit surprising. Assuming the ADP report earlier this week is an early indicator of a more positive jobs report tomorrow, perhaps this bullish trend continues tomorrow. But an alternative view is that we set market highs today and a strong jobs report makes the market reconsider the Fed beginning to withdraw their stimulus and results in a bit of a pull back - difficult to predict. All one can do is hedge your positions.