The U.S. markets were able to build on the momentum generated by the previous session's strong reversal in opening trade amid some favorable earnings reports from AAPL and others, but the action quickly turned into a fading opportunity. Technically, the S&P stalled on a retest of the downward sloping trendline. See the SPY chart below - the SPY opened where Friday's sell off began. Choppy/mixed trade persisted into the afternoon ahead of the Fed Chair's testimony at 2:00 pm EST. Up until then we had been trading within the initial trendline from yesterday's reversal. The Bernanke selloff started just two minutes in as price broke the trendline and swooned.The testimony reinforced what we already knew, slower growth than previously estimated and high unemployment over the next few years.
Euro retracing after hitting resistance and USD retracing for a retest of the broken trendline.
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