News trumps all other analysis. While I don’t see anything that Bernanke said that would warrant today’s action, obviously the market did and that’s all that matters. Even with today’s mega rally, $SPX was not able to close above yesterday’s high and it clearly didn’t close anywhere near yesterday’s low so there is no legitimate ‘sell’ signal for $SPX.
The market can correct through time or price and right now it is correcting through time. If markets don’t give us a pull back next week, then it’s time to label this as merely a consolidation period which then should lead to the next part of the rally leg. I don’t see how we can move higher without a pull back as buying at the highs is not generally a profitable strategy but if the market wants to go higher then that’s that’s.
Hope you have a chance to enjoy your long weekend with family and friends.