YELLEN OPENS HER MOUTH

Yes, today Senorita Yellen testifies again. Any time she opens her mouth the market just goes upward. Let’s see today as well the reaction of the market; specially we are expecting high volatility at that time. For sure there is no evidence the market will go north, so don’t sell your house and buy the market today. Mr. Market always goes that direction which creates the biggest pain. In other words, there are no real big sellers on the floor and all investors want to see pretty shortly the SP500 at 2,000point.

Yesterday stock markets closed firmly in green territory. US benchmark indices closed higher after a lost ground last week. Especially the Dow scored a new intraday record at 17,076 and as we expected yesterday stayed above steadily the 17,000 key level. The prior intraday record was at 17,074 on 3rd of July. The DJIA closed again above the 17,000 level, first time since July 7.

Is there any caution flag? We don’t think so. Investors returned from the weekend in strong buying mood and we are expecting more gains definitely this week.

• Dow +0.7% to 17,055 (Close 12points below the previous record)
• S&P 500 +0.5%
• Nasdaq +0.6%
• Russell 2000 +0.5%

In terms of technical analysis the DJIA must be closed above the 17,055 today and then the area is opened for further gains and might be heading to 17,500.

The BFM Assets Team.