This double bottom has a chance, but a lot is riding on news out of Jackson Hole later this week from Fed Chair Bernanke about actions to stimulate the economy.
Hong Kong stocks opened sharply higher following the announcement Friday by U.S. Federal Reserve Board chairman Bernanke that the Fed might launch new measures in September to stimulate the U.S. economy.
With the Fed Funds rate still sitting at 0, the central bank has had to get creative in order to find ways to try to stimulate the economy. How will the market react to 'Operation Twist'?
While Bernanke's latest announcement said nothing he didn't say in Jackson Hole, Wyo. last month, the lack of movement of the central bank in terms of implementation of economic growth strategies did not sit well with investors.
This technical breakout carries some risks with the S&P 500 up more than 4.6% in three days, but institutions are afraid of missing the market ahead of big news.