12:40pm (EST)

It figures the major indexes would go into Friday’s big Bernanke speech right at support, providing current levels hold.  Today’s 1% pullback could be a stark reminder that if Big Ben can’t deliver some good news for the bulls, things could get ugly in a hurry.

Tomorrow’s Jackson Hole speech will have an immediate impact on the market as Bernanke will speak in the morning.  We are expecting the bulls to hold support and futures will probably be flat ahead of the European markets which open at 3am (EST).  They could remain that way until Bernanke speaks his first sentence.

Economic news has been coming in better-than-expected, including today’s Jobless Claims and Personal Income and Spending reports so Bernanke will have to be careful on using his last bullet too soon.  Of course, he was hoping Mario Draghi would have provided more clues on what Europe plans to do and he doesn’t have the luxury of getting a good read after dude cancelled his trip due to his heavy workload.

This means Bernanke’s words will have even more impact and if he stalls, the bears could push the next wave of support.  If Big Ben opens the flood gates, we could see a powerful rally in the weeks to come as Europe would certainly follow.  If both stall and nothing gets accomplished then we could see a sharp selloff.

Our trading plan has worked beautifully over the past 2 weeks as our portfolio is light and ready to play the next major move in the market.  We did add one new trade today and it has more to do with the fundamental story of the company and not what the market is doing.

We have some last minute updates for our current trades including a position that has been stopped out.  We were hoping to squeeze a little more juice out of our WellPoint (WLP, $60.84, down $0.96) call options but the Hard Stop on our other half of the trade has been triggered.  Our dedicated subscribers made 193% in just 9 days.  Nice!

As we head to press, the Dow is down 103 points to 13,004 while the S&P 500 is lower by 11 points t o 1,399.  The Nasdaq is off 30 points to 3,050.  We have talked about these numbers all week so let’s see if they hold into the close.

Subscribers, check the Members Area for the updates and get some rest tonight.  We could have a busy day tomorrow and we will be adding some possible new trades to our Watch List to play the market’s next move.  Friday is going to be fun!