SPX

Mr. Bernanke will be testifying before Congress at 10am ET tomorrow. I don't believe it will be a market-mover (beyond Wednesday) unless he says something different from his last Boston speech a few days ago. I also don't think he will say anything different for months to come. So this will be a good environment for trading. But expect volatility tomorrow, not because of anything significant he will say but because that is what always happens when he speaks during market hours. Usually the market will drop while he is speaking then make a bounce towards the end of the speech or after.

As I said on Sunday, I have confidence in Mr. Bernanke, whether he decides to increase, decrease, continue or end QE. He makes decisions after taking into account many data points. He has the best interest of this country (and the world) at heart as opposed to his agenda-driven, politically-minded, perma-bear critics who are just hoping for the economy to fall apart. They down play every good economic data with their spin and constant whining. They have gone from "QE will not work" to "fake economy due to QE that will end badly/burst".
Of course the market will crash eventually because that is what markets do (they go up and down). We are in a bull market which will be followed by a bear market WITH OR WITHOUT QE. Bull markets take escalators or stairs, while bear markets take elevators. In other words, bear markets tend to be fast and short while bull markets tend to be slow and long. Traders who make money during the bull market will be the same folks making money during a crash/bear market because the same technicals that took price up will also take it down. So stop worrying about the Fed and follow the charts.

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