It appears as though Chairman Bernanke is not acquiescing to many market players’ wishes of further quantitative easing measures discussed during his testimony in front of the Senate this morning. Regardless of the underlying reason, we have seen a pretty sharp fade from the opening move higher. Once again, holding above the 1357/8 level on the S&P 500 is proving to be a difficult task for bulls, in addition to the 2,900 level on the Nasdaq.
The reversal has thrown a wet blanket on even the best-looking breakout plays from this morning, including many in the health food and wellness sector. Overall, though, the market continues to consolidate after the upside reversal late last week. As an example, the S&P is still well above the 1335 breakout point from earlier in the summer, which was prior resistance.
There is not much low hanging fruit here for either bears or bulls, which means the continued struggle of remaining patient and exuding restraint carries on.
