S&P500 1H chart 1:25PM EDT 7/17/2012
To sum up the Bernanke testimony, it provided nothing new about QE expectations, which has always been ready for use if economic conditions do worsen. Well, economic conditions have worsened throughout the year, especially when looking at the jobs data. However, the language is not stronger on QE.
The S&P 500 initially fell, as if Bernanke indeed disappointed the markets on QE3 hopes. However, it did an about face after that initial reaction, and is now establishing new highs for the 7/17 trading session and the week.
To the upside a break above 1357 resistance pivot from 7/10, opens up the July high at about 1375 from 7/5. If this break is not able to confirm be a move such as a throwback that remains above 1350, then the 1340 level is key support, below which opens up 1320 and 1305 again.
S&P500 4H chart 1:28PM EDT 7/17/2012