Bernanke Bounce Could Be In Play
This morning, the Bernank told the market exactly what they had already expected, no QE-3 right now. He did hint that it is possible in the September, however, he is keeping the market guessing. The Federal Reserve has lost a lot of credibility over the past five years and another quantitative easing night have put the nail in the coffin for the central bank.
The markets immediately flushed lower after the speech, however, it has bounced higher off the morning lows. At this time, it is critical for the SPDR S&P 500 Trust to trade and close above the $116.00 level on the hourly chart. Should that occur the SPY will have a potential intra-day upside target to the $116.95 area. Traders must stay tuned as this is going to get very interesting.
Should the market rally higher today traders should watch for strength in Nordstrom Inc(NYSE:JWN), Amazon.com Inc.(NASDAQ:AMZN), and Riverbed Technology Inc.(NASDAQ:RVBD). Some of these stocks may have already taken off to the upside at the time of the writing, therefore, always use good technical analysis before trading anything that is extended.