You should expect a similar down day to yesterday, but just not as deep. The bulls are hoping Bernanke’s testimony will be the Red Bull to give this market wings again. Will it work? Probably not. Will they try really hard to keep this market above 147 today? You betcha.
However, keep in mind, surprises in either direction will be exaggerated. It’s an emotional, touchy market. High chance VIX ends above 19 again today.
Considering what happened yesterday, those who didn’t have the opportunity to sell Monday will sell today as soon as they have the chance and we break again below 150. (already happened as I’m writing this)
Ben’s testimony begins at 10am and will be the major market mover today. Keep an eye on any news as it will be the catalyst for selling.
Best of luck. No emotions today, traders. Just discipline.