S&P Futures Consolidate Following Encouraging End To Week

The S&P futures are holding strong today while consolidating around Friday highs after equities posted a solid rally in reaction to remarks from Bernanke and a prelim GDP figure one basis point above analyst expectations. Bernanke emerged from Jackson Hold in a defensive posture as anticipated, iterating the Fed's defense of the U.S. economy should fundamentals continue to deteriorate. As we explained on Friday, Bernanke's widening monetary stance could bode well for equities over the medium-term since loose liquidity normally boosts corporate performance. Meanwhile, although U.S. GDP has slowed considerably the figure still topped analyst expectations, and a win is a win. Equities relished in the victory and hopped back above their psychological 1050 level while avoiding a test of our key long-term uptrend line. However, headwinds do remain and investors should still tread with caution since equities could be subject to renewed selling pressure should fundamentals disappoint. Speaking of which, the U.S. has a couple piece of data on the way today, including personal spending and the PCE price index. Bulls are hoping for a pick-up in personal spending despite considerable weakness in employment. However, more emphasis will likely be placed on Tuesday's CB consumer confidence figure. The Fed will also release its meeting minutes tomorrow, meaning markets could take a breather today as investors ready themselves for tomorrow's stream of news and data.

Price: 1066
Psychological: 1050, 1000

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