In the weekend report I told subscribers that Bernanke would throw everything he had at the market early in the week to try and abort the market correction. I described it as a war would be fought.
That war is certainly playing out. If
the Fed can push stocks back above 1654 then Bernanke is going to win
the war, and the parabolic advance in stocks will continue.
On the other hand if the S&P drops
below 1560 then the Fed has lost the war and stocks will complete their
natural tendency to regress to the mean.
If the S&P closes back above $1600 today then the Fed has won an important battle for control of the market.