Traders may want to take a step back. The market seems a little confused. After a two week bounce yesterday's decline looked like a clear reversal lower. The more optimistic view point is that yesterday's dip was just that a temporary pull back in a new up trend. Stocks rallied on Bernanke's comments this morning and completely ignored the dismal new home sales numbers. Yet the rally in the S&P 500 failed to breakout past yesterday's trading range, which suggest indecision by investors.
There is a lot of economic data and news yet to happen this week. Tomorrow we'll get more Bernanke testimony. The markets will also digest the durable goods number, weekly initial jobless claims, and the Kansas Fed manufacturing survey. Plus, the big story tomorrow will be the Thursday night Obama healthcare debate. Then on Friday we get the ISM reports and the GDP revision.
Any of these events or reports could move the market and with so many coming out the next couple of sessions could be choppy. I'm not adding any new plays to the newsletter tonight. Let's see what happens tomorrow.