Bearly Lower So Far

Given the entire discussion over sub-prime/commercial paper implications, major brokerage house debt trading at junk status, and the supposed Fed's unwillingness to aggressively cut the fed funds rate, the bear would seem to be in the position to drive the DJI, SP500, and the NQ100 lower. New recession worries would certainly provide the bear market handle some credibility. So far however, the bear has been turned back. Failure to close under the March/April lows on August 16 did not help their cause. Of course it was quite interesting the market had such a powerful reversal the day before Fed intervention, but it pays to be wired to the inside. The reason for the indexes continued support, it is explained, is that the Fed will ultimately deliver whatever is needed in containing the downside and preserve the bull run. Now the Fed may not be as powerful as people would want to believe, but the bulls still hold the upper hand until some serious technical damage can be done.