The 50 DMA and 200 DMA are about to collide. What next?

One word: Reundecoupling (was also very appropriate last year when the China thesis plummeted, but investors have 24 hour long-term memory).

Developing story: German Government adviser says Porsche should sell some VW (VOW GY) shares to raise cash.

Disclosure: no holdings of volkswagen or porsche securities.

As Ben is about to be crucified before the House Committee on Oversight and Government Reform, below is his full prepared testimony. Also, if readers want to watch the hearing live without CNBC's commercial interruptions for Sham-Wow or Mark Haines doing long division on air to calculate the difference between Dow futures and fair market value, they can do so here.

In an interview with MarketWatch's Jon Friedman, Janet Robinson, CEO of embattled former media titan and now merely distressed media company scrambling to plug debt covenant holes, New York Times, has announced that she has had it with other members of the evil, speculative media world.

• Second derivative promptly trounced: Initial jobless claims pick up again to 627k (Reuters and Bloomberg)
• Jonathan Weil: Capital One's $549 million man buys back freedom (Bloomberg

• Bernanke will face hostile questioning on BofA deal.
• Fed leaves bond-purchase program unchanged, says pace of contraction slows.
• Fed: Key interest rate will remain near zero "for an extended period."
• Irish banks face $49 billion in losses.
• New-home sales unexpectedly fell 0.6% in May from the prior month.
• Bed Bath & Beyond's qtr net up 14% at $87.2M; revs up 2.8% at $1.69B.
• China Construction plans to set up a venture with Banco Santander.
• China Petrochemical completed purchase of Addax for $7.2 billion.
• CKE Restaurant
  

• Wall Street begins campaign to thwart populist overreaction (Bloomberg) [Zero Hedge soon to begin campaign to thwart this campaign]
• $27 billion of 7 Year USTs on deck (Bloomberg)
• Deflating our way to Posterity (

First, Darrel Issa taking on Bernanke in what may prove a fateful and timely opposition against the Federal Reserve, now Alan Grayson going for Bernanke, Geithner, and Vikram's jugular. Just when it seemed that the D.C.-Wall Street crony alliance would last forever (don't worry Barney, we still love you), opposition voices finally emerge and take on the biggest culprits head on.

Among the questions that Grayson is seeking the SIGTARP's assistance on are:

The following may or may not be all the emails that will be referenced at the hearing tomorrow. Oddly (or not) the $78 billion portfolio of problem positions has been redacted.

The following may or may not be all the emails that will be referenced at the hearing tomorrow. Oddly (or not) the $78 billion portfolio of problem positions has been redacted.

Spreads were tighter in the US as all the indices improved (though 2-3bps wider than the pre-FOMC tights in IG). Indices generally outperformed intrinsics with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew.

The brand spanking new team (and legacy boy Craig Schmidt) that Merrill recently acquired from some other bank (I wrote about this, but frankly don't remember where these clowns came from nor do I care), just went to town all over the REIT bathroom and marked their territory effusively. ML in fact distributed a 45 page reinitiation report, which I have no intention of ever reading. The summary ratings and price targets are below.

The brand spanking new team (and legacy boy Craig Schmidt) that Merrill recently acquired from some other bank (I wrote about this, but frankly don't remember where these clowns came from nor do I care), just went to town all over the REIT bathroom and marked their territory effusively. ML in fact distributed a 45 page reinitiation report, which I have no intention of ever reading. The summary ratings and price targets are below.

This is what direct, premeditated, overt manipulation looks like.

For indirect, just look around (especially the 900 level on the S&P).