I'm using the SA Top 40 futures chart from IG markets below....
The market is currently cross-current (momemtum pushing down against positive trend) so expect choppy conditions to continue. My favourite analogy is when the wind (momentum) blows counter to the prevailing current (trend) then you get choppy conditions. When the wind and current are moving in the same direction this cause big swells in that direction. This is when both long term and short term investors act together, instead of against each other.
However, although momentum is moving down it is still positive (i.e. in upper half of bottom chart) so expect bias to upside still. Wall Street is in a similar "wait and see", choppy mode so I don't expect any fireworks or big moves this week. The market is most likely expecting some data points and / or a statement about or from Yellen.
Out of interest, a recession usually follows the appointment of a new Fed Reserve chair.....
Volcker, appointed 1979, recession 1981 – 1982
Greenspan, appointed 1987, recession 1990 – 1991
Bernanke, appointed 2006, recession 2008 – 2009
Yellen, appointed 2014, recession ............
