Yes, as I mentioned yesterday, the risk of the markets bouncing off their trendline was definitely there. The inflation rate (once you take away such non-essential luxuries as food and fuel) was low, and more signs of a worsening economy (anemic retail sales) had the perverse effect of pushing the markets higher.
So today might have been a turning point, but it was example eight thousand and twelve of false hope (e.g. yesterday's short, sharp shock).
It's hard to tell which way is up anymore. You could look at the Russell right now (intraday graph) and make a good argument for yet another bounce which is just getting started.
Using the same graph, you could also show a very plausible dome, indicating a market topping. Search me. After 11 months of banging my head against a wall, I'm as open to suggestions as the next person.
I'm going to have a lazy day and offer you some good weekend reading. Most of these links came from thoughtful readers, whom I would like to thank. I always welcome interesting reading, so feel free to post links in the comments section as you come across it.
Liquidity Boom and Looming Crisis from Asia Times
A Bear Market This Year? by Sy Harding, who also wrote this
The Great Crash of 2009 from the Interactive Investor Blog
The Bubble Hall of Fame
Friday, May 11, 2007