by Graham Summers, Gains Pains & Capital:
The winning streak for stocks broke yesterday, with stocks posting a small drop (just 0.3%). We had forecast a summer rally a few weeks back and sure enough stocks have put in a 10-day winning streak.
The important line to watch is lined out below. Bernanke’s verbal intervention managed to kick off a rally when he spoke after the market was closed on Wednesday. But if we drop back below this line again, there’s not a whole lot he can do, after all, he’s promised to maintain QE… which he already had in place.
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