Bernanke’s words before Congress made him seem like the most level headed person in Washington. He warded off the notion that the feds would step in and nationalize the Citigroup (C) or Bank of America (BAC). He also gave some optimism at the prospect of a turnaround in the economy by year end. Whether that happens or not – who knows!
After the action in the market from yesterday and today we have a very defined downward channel that we are trading in. Today’s action has us bouncing off of the bottom of the trend line, and we expect that there will be further follow through to the upside in the days ahead, in light of the strong oversold conditions. So today’s rally isn’t something you want to short. Let there be a few more days of positive action, and when the S&P reaches the upper channel trend line, then that is where you want to reload at.
Here’s the NASDAQ and S&P charts…
