It seems like US market has finally turned in confidence, fueled by the disappointment of Ben Bernanke's speech. Actually, Ben did not confirm that there will be an end to QE3. The quotes from marketwatch were:
"Federal Reserve Chairman Ben Bernanke said on Wednesday
that the central bank may begin to scale back its $85-billion-a-month
bond-buying program later this year if the economy continues to show
People in Wallstreet seems to ignore the word "IF", they just sell in assumption of the certain fact that FED will slow down. As I have mentioned in previous article, the run-up before Ben Speech probably did great injustice to the market. The great expectation of Big Ben being the market savior has probably played into the hands of the BEARS. The bears are probably already looking at any words from Ben to shoot down the market.
It just does not matter anymore what Ben said!
The most important thing is that the confidence of the market is already dented! VIX, the Fear index is already showing its vulnerabilities. The downward momentum is gaining strength.
Now the Bulls suddenly do not seem to have a lifeline anymore. No more Ben Bernanke, no more QE, no more good news...
IF, US earnings that will come out next month indeed shows their growth rate are slowing down, the market will spiral down! So be warned...
We think DOW has a chance to reach 14000. If it reaches that point, then we think it is SHOWTIME again!