The bulls got overly enthusiastic after the big 2% move yesterday on a better jobless claim, China rate cut and more QE optimism. Expectations were high for some hints of QE and profit taking took place when no concrete plan was discussed. Bernanke did indicate that if conditions deteriorate, the Fed will roll out some form of easing measure. It will be tough for the bears as the Bernanke put is alive and well. However, we have a catalyst void for a week until the Greece vote and the FOMC meeting next next wk. Some sideways action to test the recent support without dropping too far would be healthy.
