Market summaries, headlines will read of an abysmal existing home sales number leading to the indices being shellacked!.  This is not true at all.  If you trade, you know it was almost the saving grace as it peaked the selling pressure and reversed a trade back into risk as TSY hit 2.5%.   We say ‘almost’ because it could have been the perfect infliction point today, if only the market didn’t peter out after finding some footing intraday after an impressive reversal!.   In all honesty,  it would have been better if the market closed near lows of the day instead of teasing to 1059 at 3:20pm and than managing to close at SPX1051.

The real destructive culprit,   leading to the open gap down and to the low 1050’s before the existing home report hit was the article alerted premarket of a "contentious” FED.  (a mega big construction co’ (CRH) bad report helped too).   Nobody in their right minds involved in the stock market wants to see or know of an argumentative, quarrelling posse at the FED!.  It’s just not healthy for an already sensitive market.   If the story is not true,  members better stand up and explain.   The market already has no idea what they are essentially doing with the last FOMC statement and this just adds to the murky picture.

Barring an unforeseen catalyst hitting before Bernanke’s Jackson Hole address,  the market should stabilize and may still reverse in anticipation of an 'Oscar' catalytic performance by Ben.