Bernanke Insists On Urgent Action

Good morning. The negative bias we saw yesterday is still with us this morning as Bush & Congress haggle over the $700 billion dollar bailout.

Bernanke and Paulson are due to testify in front of the Senate Banking Committee beginning at 9:30AM and SEC Chairman Christopher Cox and Federal Housing Finance Agency Director James Lockhart also are due to testify. Bernanke will insist that Congress take urgent action this week.

In other news, U.S. chain store sales decreased 1% last week and oil prices are moving lower in early trading. In addition, the SEC revised its new short-selling rules.

Premarket gainers: CC, COMS, IMCL, PCCC, UAUA, DSL, FNM, FRE, AIG, URRE, AGM, SPF, KBH, SSRI, PMI, ATML, MTG, & ABK.

Premarket losers: RTP, WM, CACH, LYG, UBS, HGR, GFI, BHP, CEF, X, WB, TMA, IBKR, CRH, AAUK, ROS, EPIC, MER, LRCX, MELI, & APD.

Other than the State Street Investor Confidence Index at 10:AM, there are no economic reports due today. All eyes and ears will remain on Washington today as Congress gets closer to passing the package later this week (especially since any additional delay would force them to postpone their pre-election vacation time).

Technically, we don't want to see a sustained breakdown below the 1200 level in the S&P and, of course, last week's closing low at 1156. Meanwhile, many are hoping for a successful retest and subsequent "bailout rally." (Let's hope that rally is much better than we've seen following the other rescues.) In fact, I'm already hearing the old adage about how we're suppose to sell stocks before Rosh Hashanah, the Jewish New Year that falls next Tuesday and Wednesday, and not buy them back until Yom Kippur, which falls 10 days later on October 9th. If only things were that easy as far as the market is concerned!

Have a terrific Tuesday.