It was another week of wild mood-swings on Wall Street, as Ben Bernanke seemed to be intent on roiling the markets. Deliberate or not, the effect was the same, as investors seemed hesitant to jump in on the dips with the same enthusiasm that they have for the majority of the year so far. The question is, will the volatility express continue to barrel through the summer vacation months?

The last couple of weeks has seen Wall Street moving in something of a sideways trend, though that hardly indicates the increased level of intraday volatility that the equity market has been experiencing since the last week of May. Will it be more of the same for the coming week? Bet on it . . .

The VIX is looking a little bit jumpy as of late, perhaps reflecting something of a rising wariness among investors in terms of risk.

Can the Bulls be standing on something of a slippery slope, about to slide towards a trend reversal? Or is it just a seasonal thing, with investors tightening up their portfolios prior to summer?

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Nothing like a 300-point swing to light up the volatility index. That’s pretty much what happened last Friday, as the Dow Jones Industrial Average (DJIA) started the day with a nice little 70-point gain in the morning.

From that point on, however, investors seemed to lose their appetite for equities, as the Dow trended steadily downward for the remainder of the day. Steadily, that is, until the last 15 minutes of the trading session, when a sharp drop ensued as sellers proceeded without any noticeable resistance into the close.
 

“Everything we shut our eyes to, everything we run away from, or despise, serves to defeat us in the end.” -- Henry Miller 

Last week’s market action might be seen as an indication that the Bulls may be wavering in their conviction to some degree, as volatility in the market gained traction over the last three days of the week.

“Some of us think holding on makes us strong; but sometimes it is letting go.” -- Herman Hesse

This is one obsessed Bull that is raging through Wall Street at the moment.

"If you simply try to tell the truth you will, nine times out of ten, be original without ever having noticed it." -- C.S. Lewis

Another week, another victory lap for the Bulls.

Anyone notice a pattern here? Technically speaking, at least, that pattern is a solid uptrend, with nary an imminent level of resistance close to the horizon.

“So be sure when you step. Step with care and great tact. And remember that Life’s a great balancing act.” -- Dr. Seuss

The market has gone back to its Bullish ways, resuming the upward trajectory that has been effectively going on for most of the year, as represented by the 13% gain to date of the S&P 500 Index (SPX).

“All generalizations are false, including this one.” -- Mark Twain

For those investors who may have been feeling a tad complacent due to the recent record highs of several of the major indices, last week probably served as a reminder that high volatility is always just a shout away from knocking the market down a notch or three.

“Try not to become a man of success, but rather try to become a man of value.” -- Albert Einstein

Ben Bernanke is back for yet another close-up this week, and in spite of a certain degree of dissent amongst the Fed ranks, chances are better than even-money that the press conference that follows this week’s gathering of the Federal Open Market Committee Meeting (FOMC) will find Big Ben indicating that the super low interest rates, strong stimulus tack will remain in place.