This market continues to go to extremes, ... Techs have sold down sharply. Now there's a bit of bargain hunting from what appears to be very cheap levels.

The U.S. economic recovery appears to be further down the road than many expected, so another cut in interest rates is not likely to mean a great deal, ... What's more important is when companies report they're starting to see a reduction in inventories.

For the most part it appears most of the bad news is out.

It gave sellers a chance to lighten up a bit, ... On balance, this just appears to be investors taking a breather.

A lower interest rate cycle is under way and lower interest rates are likely to prompt more money into the markets, ... For now it appears to be a 'safety first' posture, so we're seeing money rotating into better blue chip names that are more predictable in terms of earnings flow.

Essentially we're just completing a week where there appears to be some market stabilization starting to surface,

The Nasdaq appears to be probing for a bottom, ... The more erratic the Nasdaq is, the more attractive the old economy stocks appear to be for investors who want to be risk averse.