SPX Opens Higher and Closes Lower After Bernanke Speaks...

Dave is still traveling...

Apparently big traders sold the market after Bernanke told Congress that the recovery was fragile but not weak enough to require additional Fed intervention at this time and he felt the odds were that the economy would not slip into a double dip recession.  At the same time he indicated the Fed would stand ready to consider additional action if the economy weakened further.

So let's reason this out...
1.  Big Traders think Bernanke doesn't know what he is talking about even though he may have access to data that they may not see or hear...
2.  Big Traders are throwing a tantrum that Bernanke did not give them more stimulus even though Bernanke's opinion was that it was unnecessary at this time...
3.  Big Traders are trying to sucker less knowledgeable traders and investors into selling to them at lower prices than the Big Traders shorted at, so the Big Traders can make another big profit at the expense of less experienced traders...
4.  You choose another explanation of what you think is really going on here...

Bernanke tells us the obvious, the recover is fragile, and not so weak that additional Fed action is required at this time and the odds don't favor a double dip recession...sounds pretty good to me relatively speaking...

Warren  Buffett has been atrributed with saying if you're in a card game and you don't know who the sucker is, then you're the sucker...

The economy is strong enough NOT to require Fed action, Big Traders sell off...No...they wouldn't be trying to sucker somebody in, would they?

The SPX formed a higher low and a higher high while closing lower...look at May 26, June 9 and the following trading day in both instances...been there, done that?

Dave's Insight:  Whatever you do I suggest you follow your rules...