Friday’s intraday low, which created a test of the 1040 level on the S & P, was due to the post-halt gap in Intel. That low may have been somewhat false, but the day’s rally was not. A string of positive surprises late in the week supported a rally off of the low. The 2^nd quarter revision in GDP to just 1.6%, was better-than-expected. More important, the catalyst for coming in higher was that Personal Consumption was revised to a gain of 2.0% from 1.6%. No changed was anticipated. The fact that GDP held up better than expected because of the consumer was a major catalyst for the enthusiasm. The other key catalyst to the session’s rise was due to comments from Bernanke’s speech. There were two important factors. One, he downplayed the potential for a second dip and left out any reference to the “unusual uncertainty” of the future. The other was addressed specifically at the very catalyst that was at the heart of the recent three week decline, deflation. Refuting the argument made by other Fed officials, Bernanke said there were several ways that the Fed could combat deflation. Perhaps the most important statement was that the FOMC would “strongly resist deviations from price stability in the downward direction.” In other words, Uncle Ben is on the case. We saw an immediate reaction in the most economically sensitive “risk trade” areas, like the Russell 2000, up 2.8%. We’ll still need more help to keep the bounce going. Today Personal Income and Spending lead off a week of economic news.