So let’s look at the facts:
1) Durable goods orders ex-transport were slightly better than expected. NEUTRAL
2) Stock futures are slightly up this morning. Can’t be because of durable goods, so it must be Bernanke’s testimony today giving the market optimism. BULLISH
3) Sequester is in 2 days and Bernanke is warning Washington of its potential detrimental effects on the economy. BEARISH
4) Yesterday’s 0.7% bounce in SPY followed a 2% down day. So we have our natural, expected bounce up after a large-sell off. NEUTRAL
5) We are technically still in a downward trend. BEARISH
What does this mean?? It means there are more downside catalysts present in today’s market. I do think it’s possible we could have a slightly green day today, but this week is set to end deep in the red.
For more, read the post below. Are You Ready For This Week’s Violence?