Ber-nanke tanks the market:
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Market Recap: The market continued to trade in the upper half of yesterday's range and a couple of times tried to unsuccessfully make a SPY 130 run. News out of Greece's no confidence vote and the FMOC statement release seemed to keep the bounce going but as soon as the Ber-nanke got on TV (around 2:30 PM EST) things started going sour. As I suspected this was a sell the news event and we saw the dollar confirm the reversal of risk appetite (on less than convincing volume). The steep sell-off continued into the after hours sessioin where SPY last printed 128.05 (under the 23.6% fib). We got our 3-4 day bounce what were we expecting? New 52-week highs? ;-)
Where do we go from here?
Who knows... but I would like to see us hold the 5/8 EMA's on the daily for any shot of continued upside but I'm thinking we could base down here above the 200 SMA until the markets get more information out of the EU, our fragile economy, etc... I'm fuzzy on the time frame but it feels like we're setting up for lower prices as commodities are looking weak which are a good leading risk measure. The lone exception is gold (see Peter Brandt's piece about shorting commodity ETF's). We're kinda of in a wait and see spot.
JNK v. LQD