While I expect no fireworks from Easy Money Ben Bernanke today, one should expect traders to be on pause awaiting his wise words of almost infinite easy money policies. Look for knee jerk reactions, both up and down, to any phrase or word that gets traders in a lather. This is what the gambling hall, errr... stock market has come to.
As for the greater market, as stated yesterday I sold off the index long positions and saw 1109 area (with stop loss over 1112) as a good position to place a short term bearish bet on the market. That was just about the high of the day yesterday before the late day selloff. Since I am not at the computer most of the day for the majority of this week I am not doing this strategy right now, but this is what I'd normally be employing. That said, I am not sure what major downside awaits us on any pullback because some key support levels are not too far below. However this rally (yet again) on vapor volume continues to astound me, and many other veterans on the internet I have been reading for years.
An incredibly rare premarket that is not positive awaits us - I guess Ben is too busy preparing for testimony today to be supervising his underlings to hit the buy buy buy button on SPY futures.