Ms. Yellen made sure she spoke the words the market wanted to hear. Keeping rates low is what the market wants, and keeping rates low is what the market will get. She won't do anything she knows will hurt the market, because she uses the market to keep her job safe. If she lets the market fall hard, then she's allowing the economy to slip, since the market is keeping the economy higher. Repeat after me. The Fed's job description is as follows: you will do whatever it takes to keep Wall Street rocking. Good luck! That's her job in a nutshell folks. Nothing more and nothing less. She's all about 401K's and funds doing well. As long as she's doing her job here, it's going to be very hard for the market to fall precipitously. That's even with froth still out of control week after week.

After she spoke the market rose and then fell fairly hard. It then advanced hard again, only to pull back again. Lots of indecision. The handle is still the only thing we know about with certainty. We tested the old high on the S&P 500 at 2011, with a 2010 print, and then things fell fairly hard. In the end we're still nowhere. Still meandering in the back and forth handle, thus, keep it light until we get resolution one way or the other. There's no resolution here for sure. Hope, but hope isn't a breakout if you're bullish. See the close over 2011 with some force and then adjust accordingly. Nothing to adjust to at this moment in time. Same old for now.

The bull-bear spread is down to an unacceptable 37.3%. It's better than being over 43%, such as we were a week ago, but it's still not a healthy number for the bulls, therefore I'll say it again. At any time, and without provocation, the market can get smoked to the down side. It's not showing that at all at this time but the possibility always exists when froth is very high, especially for as long as it has been. It's nasty when you're over 35% for months at a time not to mention half of that time being over 40%. We even touched twenty-seven year lows in terms of bears. No matter how good the pattern looks, you have to recognize the risk involved. Just when you let your guard down you can take a very nasty hit for no reason. Don't let your guard down for a moment. Keep stops tight. Don't chase froth. Do what feels right to you, of course, but that's how I would be proceeding from here until things calm down in time. Froth is still a major headache even though we at least got a drop of relief this past week.

There's nothing much more to add. A close over 2011 gets you more bullish. If and when we ever lose the 50's, which is along way from here, you get more bearish. In between you should continue to expect more whipsaw. Today we saw a disappointing close. We went from just about breaking out to a strong late push down. The market received all it could want today and yet failed at the breakout. See the breakout and then play it and not before. Day to day is still the way here

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

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