On previous post, noted bear case. There are a few who are looking for a bullish scenario with a contrarian view. If the current support is held, I think that this scenario is possible.
One more note on the bullish count, majority of big brokerage firms are wrong on the market if we indeed go into bear market even though many are anticipating mid year rally into the year end.
I noted the pivotal week during the last week and the next one is in Jun 2008.
It is interesting that Warren Buffett is supporting Obama. Bear market action certain favors Buffett as many will be discontent with bad economy and bad stock market.
Let's see whether we will see a miracle if market can rally from here thinking that the bad news is priced in and starts to discount a moderate recovery which will bring economy to sustain the ARM crisis shock.
I think that 3 factors will help economy and soften the ARM crisis impact.
1. Interest cut on Mar 18, if not earlier.
2. Economic stimulus package which will start in May 2008.
3. Stable financial market instead of falling into bear market at this time.
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