It is going to be a long day waiting for Ben Bernanke. Tonight he will announce whether a further round of stimulus measures are required for the US economy. The market has become very excited over the prospect of QE3. I am not sure they will get it. There will be an almighty sell off if they don’t. We can only wait and see.
From a trading view point we have to use a wait and see approach, anything else is too risky. You have to go with the announcement and the market. QE3 will cause a continuation of the present rally whereas the reverse will mean a very sharp sell off.
In the meantime there may be some jobbing opportunites this morning and into the afternoon but they should be contained.