Market Comment 08 27 10

After three consecutive weeks of stock market declines, the bulls finally surfaced today and, supported by Fed chief Bernanke's encouraging words, pulled the markets off their lows. Despite Friday’s strong up move, the effort was not enough to propel the major indexes into positive territory for the week.


The Dow lost 0.6%, while the S&P 500 and Nasdaq gave back 0.7% and 1.2% respectively.

The economy is clearing slowing down and the markets have been adjusting to this reality. Individual investors are very bearish at the moment. Bearish extremes often times however lead to a short term turn in the markets. We may see the market go into rally mode for a few days.