Bernanke shuffle?

May 1, 2006 · Print This Article

Bullish seasonality had little effect on market direction today, particularly when the Fed Chairman, Ben Bernanke, stated concerns that the public misinterpreted his comments from last Thursday. He said the market should see him as “flexible, not dovish”. Hmmm, did the news warrant a steep sell-off? Was the news really that enlightening or just a typical overreaction to the reported news on CNBC followed by some panic selling? We will find out soon enough. CNBC released the information late in the trading day and the bears came out in full force. Couple the news with the fact that the S&P once again struggled to sustain itself above the 1315 mark, and the move lower should be of no surpirse. The decline seemed inevitable, I just thought it would occur later in the week after seasonality had run its course. However, I would not be surprised if the bulls step in tomorrow and attempt to reverse the sell-off that occured around 3:15 today. Actually, I expect it.

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