When stocks stop going down on bad news, that's the best news you could hope for. The chart below goes back to the bottom of the last bear market in 2002-2003. The 800 level as you can see is critical. The market has been given every excuse in the world to sell off and yet the 800 level is holding up against the storm.
The Governor of Illinois set a new low for scandalous behavior until Bernie Madoff upped the ante by a few billion he stole from friends. More companies than you want to name have issued some kind of warning ( Fed Ex,TI,National Semi, Danaher,Con-Way,Stanley Works, Costco and on and on.)
The World Bank said we are on the brink of a global recession (duh!) and Tobin's Q ratio says the S&P should trade to 400.
Yet the lows we saw in October- November seem to want to be the bottom. In the midst of all the bad news might come some good news !
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