Stocks Consolidate Recent Gains

Stocks and a slew of other risk assets were relatively quiet to slightly lower as the world awaited a solution for the second Greek bailout and Ben Bernanke testified on Capital Hill. From our point of view, the major averages confirmed their latest rally attempt on Tuesday 1.3.12 which was Day 9 of their current rally attempt. It was also encouraging to see the S&P 500 break above its downward trendline and its longer term 200 DMA line. Looking forward, the S&P 500 is doing its best to stay above its Q4 2011′s high (~1292) and now has its sights set on its 2011 high near 1370. In addition, the bulls remain in control as long as the benchmark S&P 500 trades above 1292 and then its 200 DMA line.

World Awaits Greek Bailout & Bernanke Testifies On Capital Hill:

Stocks were quiet on Tuesday as Ben Bernanke testified on Capital Hill and the world awaited a resolution to the second bailout for Greece. U.S. Federal Reserve Chairman Ben Bernanke reiterated his recent stance to support the global economy and help stem Europe’s financial crisis from adversely affecting the U.S. economy. Bernanke remained cautious about the prospects for the U.S. economy. The technical action remains healthy as the major averages are simply pausing to consolidate their recent gains.