As speculated yesterday,  Wednesday reversal was .."not all there”  as far ingredients for a sustained rally or even a push though SPX1065 (we got to 1062..50% retrace from bottom) and the recent profit taking on any upside ran it‘s course once again, this time to a month low close as supply of stock for sale seems endless.   The idea heading into the week was this was not going to be a “week at the beach” and it sure hasn’t as the about 30SP handles have been wiped out. 

Incredibly, coming up on the last Friday of summer is probably the most important address at 10am for the markets in the longest time….Entering the week…".. markets attention will be turning to Fridays address by Bernanke in hope of getting some light shed on what the FED did and why and what the eco’/ deflation picture is looking like!”…..plus in the middle of week we got wind of a "contentious FED”.    Well, now the day has come and Bernanke has some explaining to do on all these issues and more, if a snapback occurs this is the perfect time at the markets month low and market confidence shot.      Also, even before the address,  GDP comes out which will show a big deceleration in growth with a number <1%  possibly in the cards.    Add this possibility and you almost have to think some policy change maybe hinted at later as well.