So what is the market saying today? In my opinion, it’s saying that the downward market phase that began six weeks ago with worries about Greece, and that accelerated as the BP oil spill worsened, is over. The bad news has done its job, raising the level of fear in the market while correcting numerous overbought situations. Hardest hit were some of the indexes. But the market’s internal strength remains intact, as illustrated by the reading of Cabot’s Two-Second Indicator. And the action of numerous leading stocks is extremely encouraging. One of my favorites is Isilon Systems (ISLN), a...
