John Buckingham believes we hit support in equities

Did the market hit bottom on Tuesday? After a dismal first 88 days of the first quarter, equities staged a major rally yesterday as oil prices sank and a report from the Commerce Department saying that pretax profits of private and public companies were 13.5% greater in the fourth quarter than in the third quarter helped send share prices sharply higher. Happily, market breadth (advancing stocks compared to declining stocks) was favorable and volume was fairly strong.

Obviously, one day does not a trend make and many remain unconvinced that we have seen the lows. Sadly, I must confess that my Magic 8 Ball has not confirmed that we won't suffer any more setbacks, though I think that the start of first quarter corporate earnings reporting season next month will be a positive catalyst. MORE::

Dow 10,400 stands as my near term support.

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