8:50am (EST)

The bulls did exactly what the charts were predicting could happen as they won their fourth-straight session ahead last night’s vote of confidence on Greece and today’s all important Fed news. 

After the close on Tuesday, it was all about Greece’s debt and if they would be getting a payout.  On this front, the news was good as the country won a crucial vote of confidence after agreeing to $40 billion in austerity measures.  However, the country still faces another crucial vote next week to get the budget cuts passed and into law by the end of this month.  Greece is banking on getting another $17 billion in payouts that should tide them over until September. 

There was a lot of strength in the market ahead of today’s results from the FOMC meeting although the indexes closed just below our resistance levels which we will go over in a second.  Wall Street is predicting no change to interest rates and policies, but that has been the usual rhetoric for what seems like years.  The bigger deal is what Bernanke has to say.

Although the current volatility has flushed out a lot of traders who were caught short, a run back to resistance was all but certain after the market held key support levels on Friday and Monday.  This was one of the clues we used to pencil in yesterday’s bounce.

The Dow gained 110 points, or 0.9%, to close at 12,190.  The index traded to a high of 12,217 and closed just below our 12,200 target.  We said if this area was cleared on the close there a chance this week then there could be a run up to 12,350 so let’s see how it plays out.  Support is now 12,000 with 11,800 providing additional backup.

The S&P 500 surged 17 points, or 1.3%, to finish at 1,295.  The index traded to a high of 1,297 and came within spitting distance of taking out our 1,300 target.  If this level is cleared then the bulls will likely try to make a run at 1,325 with 1,310 providing a little hurdle.  The bears will target 1,275 to try and gain the momentum back.

The Nasdaq was the clear winner of the day as Tech zoomed 58 points, or 2.2%, to settle at 2,687.  The index kissed 2,688 but also fell just short of our upside target of 2,700.  This level represents serious resistance but if cleared the bulls will target 2,725-2,750.  Short-term support is at 2,625-2,600.

In earnings news, look for Adobe Systems (ADBE, $32.01, down $1.06) to open lower despite beating Wall Street’s estimates.  After the close on Tuesday, the company reported a profit of $0.55 a share on $1.02 billion in revenue versus $0.28 a share on $148.6 million, in the year-ago period.  Analysts were looking for earnings of $0.51 a share on revenue of $1 billion.  That was the good news.

Looking ahead, Adobe sees revenue of $1.0-1.05 billion, and earnings of $0.50-$0.56 a share.  The suit-and-ties were looking for $0.54 a share on sales of $1.02 billion so they were a little below forecasts.  For the year, the company said revenue should rise 10% to $4.2 billion, just ahead of the $4.1 billion figured out by analysts.  The forecast wasn’t that bad but investors didn’t like the news, regardless.  In after-hours last night, shares fell a buck.

In pre-market action, shares of Adobe are at $30.50, down $1.51.

Futures were flat on the Greece news and were slightly lower when we hit the rack last night.  This morning, they have worsened just a little which is pointing towards a slightly lower open.  As we head to press, Dow futures are lower by 29 points to 12,059 while the S&P 500 futures are down 4 points to 1,284.  The Nasdaq futures are showing a 7 point decline and are at 2,237.

We have a lot to cover in our Members Area this morning, including 5 new charts.  Subscribers, check for the updates.