The stock market responded favorably to Wednesday's Fed meeting, as the major averages ripped higher in the afternoon session and posted significant gains (1% or more) across the board.

The strong price action was confirmed by heavy volume on both exchanges (NYSE +32% volume increase and NASDAQ +20%). The combination of strong price and volume action produced a very bullish session, which could spark the next wave up in the market.

With an explosive afternoon session, our long position in Direxion Financial Bull 3x ETF ($FAS) closed at a new high for the year on big volume. We remain long from our $78.70 entry on November 14 (9.7% unrealized price gain).

The PowerShares Private Equity ETF ($PSP), which we pointed out in yesterday's ETF commentary, triggered for buy entry and also closed at a new 52-week high.

Like many stocks and ETFs, iShares Hong Kong ETF ($EWH) put in a bullish reversal candle yesterday. After undercutting the low of December 11, $EWH then reversed back up to close above the 50-day MA. Volume was strong as well, coming in at 50% above the 50-day moving average of volume:



On the weekly chart below, notice $EWH is poised to breakout from a seven-month long consolidation. Notice that the price action has formed a tight range over the past two months just below the high of last May:



If $EWH can clear the highs of 2013, then it should have a clear path to $24, where there is resistance from the prior high of 2007:



Based on the bullish reversal pattern of $EWH, this ETF has been added to today's watchlist.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.