Yesterday’s rally ran into resistance, as an early bounce turned into an afternoon fade disappointing those that had hoped for more follow through to the upside.
Fed Chief Bernanke’s speech sent the markets lower, as he offered no tangible details as to the assist he could provide in boosting the economy. Wall Street’s high expectations simply turned into disappointment.
Unless, President Obama pulls a rabbit out of his hat during his speech tonight, more disappointment could be a drag on the indexes tomorrow.
The news out of Europe was mixed, but the markets were higher, as the ECB left interest rates unchanged and acknowledged that growth is slipping.
Our Trend Tracking Indexes (TTIs) headed lower as well and are positioned as follows:
Domestic TTI: +1.86%
International TTI: -9.98%.
Domestically, we are still sitting in no man’s land waiting for a clear trend to emerge in order to make a better determination as to whether the bullish phase will continue or if the bears will finally get the upper hand.
Chart courtesy of MarketWatch.com