Volatile Market Might be Pounding Out a Bottom

Editor’s Note:  David Brown is on vacation.  Scott Martindale, Sabrient’s senior managing director, is this week’s guest editor.   Scott handles institutional sales & marketing for Sabrient. He also writes the weekly Sector Detector and manages the virtual Select Opportunity Portfolio.

The abundance of news last week -- most with a positive slant -- finally boosted the S&P 500 out of the Channel of Gloom in which it was mired for so long. Not only did the S&P 500 break out of the channel, but it is now threatening the 200-day moving average, having surpassed the 50-day MA last week.

Confusion continues to reign across the global marketplace. If there's no safe place to invest, does that mean you should invest nowhere? Or should you invest where it's relatively safe?

To put things into perspective, let's start with the backdrop to last week's market behavior.