Changing Sentiment?

In my last post I wrote "the fact that we aren't much lower suggests that the street may be thinking that this could be much worse. Maybe the Govt's steps are working in that we are not falling apart. Its something to think about." Here are some things to think about:

- As the market possibly capitulated these past few sessions it is worth noting that the bank stocks and other financials that got us into so much trouble were trading to the higher end of their ranges. See BAC, JPM, & C. I was not bullish on these stocks but they do look potentially bullish.
- Market weakness the past few sessions did not make a new S&P low. Bad economic news and concerns about the House vote may be discounting things that are not as weak as anticipated.
- The Russell 2000 has not made a new low since March 2008. This is the fourth trip to the 650 range and if we hold that expect a nice rally.

However, the market still acts poorly. Its not difficult to think about the S&P500 between 900 & 1050. I have little reason to take money from cash to go long. Maybe that's reason enough...