TraderWise

After a steep decline in January, the market has been able to claw its way back. Bears see a looming credit crisis that will freeze the financial system and bulls see strong balance sheets, excellent profits and low interest rates. A tug-of-war has resulted and the market has been stuck in a range the last four months. Eventually, one side will prevail and that breakout will determine the market's future direction. The economic news has been decent this week. ISM manufacturing and the ADP employment index came in as expected. ISM services jumped to 53 and that was better than expected.