For some reason Bloomberg economic calender has Bernanke's speech at 3:45 PM yesterday, but instead it will be today. As well trained speculators, the Pavlov Dogs of Wall Street are running up futures imagining more pixie dust from the Fed. There is no way he is going to announce any QE3 action now, but certainly he could appear more dovish did than in his last comments.
- The Fed's current $600 billion monetary stimulus is due to expire this month and the prevailing view in the markets until recently was that the central bank would drop the program and possibly start raising interest rates by the end of this year.
- However, the recent soft batch of economic data has led some in the markets to speculate that the Fed may consider more monetary stimulus and keep interest rates at the record low of near zero percent well into next year. Bernanke's speech later at the International Monetary Conference in Atlanta, Georgia could have a huge impact on markets.
Technically the market closed awful yesterday, out almost on the lows of the day. S&P 1295 was the pivot point yesterday and whatever knee jerk reaction upward should be stymied there, short of something out of the blue.