Ben_BernenkeThe S&P 500 found support on its 50-day moving average and we had an “outside” day.  The closing price of the S&P 500 exceeded the high of the prior session.  Economic numbers – retail sales and initial jobless claims – are good and there is a growing positive expectation that Bernanke will temper the tapering angst when he speaks next Wednesday.

U.S. stocks are not overbought or expensive on a historic basis.  In a rising interest rate environment, they may also become the safe haven for many more investors as bonds show surprising downward volatility.

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