Bernanke seems more than a little frazzled. Even though he's saying their employment objective is a ways off from being hit (and if adjusted would be adjusted lower) and that inflation is still below their target (and likely moving towards deflation), implying tightening is still a long ways off, the bond market doesn't like it (market anticipating higher rates) and the stock market doesn't like it either. The ring master seems to have everyone confused.
I agree with the fact this whole rally has been on QE fumes and the fundamentals of the economy are down the drain. But, I think chase for performance & end of Q2 window dressing might take over and the market can drift higher. I don't think it can bounce off the 50 dma again, if we test it.
One anomaly is that RUSSEL set another all time closing high yesterday and I think S&P will do the same at some point. But, not sure if it can take out 1687.
Bond futures tested the low of June 11th on lower volume and closed above it. Bonds will probably bounce tomorrow. Stocks are going downtown. The dollar halted its slide and was up big today. Should probably buy some UUP.