Yesterday’s rally was mostly a short covering rally. The market liked that Yellen explicitly stated that she plans to continue Bernanke’s policies. A bigger positive was anticipation that Republicans in the House would defy the right-wing and vote for a clean debt ceiling raise. The expectation came through later in the day.
Now that most of the immediate short covering is behind us, how the market performs will be a good tell.
Resistant and trade levels for Gold and Oil for premium subcribers.
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Gold is meeting resistance around $1290 to $1300.
Oil is trading over $100.
Interest rates are mostly unchanged.
Gold futures are at $1291, silver futures are at $20.22, and oil futures are $101.07.
S&P 500 resistance levels are 1825, 1837, and 1850; support levels are 1800, 1775, and 1766.
DJIA futures are up 19 points.