Just when I was beginning to think I missed my market range predictions entirely, something strange happened. The market reversed direction yesterday. Expecting some new announcment from the government, fed, or someone, I found nothing to account for the turnaround other than buyers found stock prices attractive and came back into the market. Even in spite of announcements from Intel with lowered earnings expectations in the near quarters, which depressed the market early, the stock and broader markets provided a surge before the close.
This is a good sign, because it indicates that stocks are beginning to find their new price support levels from which to trade. This makes for good basing action and, hopefully, support for future recovery.
Stock market indeces tend to be leading indicators, meaning that prices tend to take into account future expectations. If price support levels hold up generally well even under current bad news, it means that investors & traders are already positioning for recovery. As always, time will tell.
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