SPX

To top off the already crazy period of wild price action the past five weeks that has given me little opportunity to take advantage of my daytrade setups due to all the big opening gaps, today, for the first time the Yellen Effect failed since I noticed and started monitoring the market's behavior on the two-day semiannual monetary policy testimony a few years ago while Mr. Bernanke was Fed Chairman.
When I first noticed this behavior a few years ago, I decided to go deeper in my research by analyzing the performance of the market on these two days. So I went back as far as 2006 when Mr. Bernanke became the chairman. It was a very consistent finding except for about two exceptions. Both failures happened during the February meetings (I noticed no failures with the July meetings). Today just so happens to be another February failure.
Also, given the wildness the past five weeks, it is very fitting for the Yellen Effect to fail during this period. But what is interesting is that the Yellen Effect was acting today just as expected until 1pm ET. I don't know if it was news-driven or the market just decided to act crazy as it has been doing lately.

This is part of a commentary I posted on Tuesday, July 15, 2014 regarding my research work on this topic. To see the whole commentary click the link below:

MY RESEARCH:
The testimony takes place twice a year in February and July, but I'm just putting the previous July dates for simplicity. So you can review the SPX charts of these dates if interested. Or you can accept my result.
Feb 11-12 2014 - Dr. Yellen's first testimony. July 17-18, 2013
July 17-18, 2012
July 12-13, 2011
July 21-22, 2010
July 21-22, 2009
July 15-16, 2008
July 18-19, 2007
July 19-20, 2006 (I think this was Mr. Bernanke's first July).

For the full commentary click here

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