Bernanke not to the rescue....
Today was a frustrating day for bulls as a breakout yesterday was doused by Bernanke's comments today. As we wrote in yesterday's recap
Unfortunately this is happening right ahead of a much anticipated Federal Reserve announcement and press conference so volatility could be intense tomorrow.
Of course we can ALWAYS have a fakeout where we breakout and immediately fail. But thus far in 2013 that has not been the case. The timing is not ideal ahead of the FOMC press conference tomorrow because "taper or no taper" talk will most likely move markets strongly in one direction or the other.
And so it was a very volatile day and the breakout was a fakeout as ironically the Fed was too positive on its economic outlook which means the potential for less support via quantitative easing, which is the drug the market loves more than good economic data in the modern era. The only thing that mattered today - and essentially the past two months since the last earnings season ended, has been the central banks so today's comments by Bernanke were the sole focus.