Head and Shoulders Bottom?

The S&P, despite the violent downside moves over the past few weeks, appears to be trading in an inverted head and shoulders pattern.

Indeed, should the market respond favorably to the 10 a.m. Bernanke speech, the neckline of this head and shoulders pattern could be broken to the upside, triggering a strong weekly buy signal.

They say don't fight the Fed and that sentiment seems to be what is going on here over the past two days as buyers have stepped up to the plate. Despite Tuesday's ugly sell off, the market has been marching straight back up the hill, carving out the right shoulder and placing the market in a position to start a fresh leg higher in the secular bull market.

No one knows for sure what Bernanke is going to say today, and no one knows for sure how the market is going to respond. Bulls seem to have a big advantage going into the game today though. Let's see if their advantage remains after today's close.