February 6, 2009

Dow Jones sees signs of market bottom

Equities are bouncing back and the bear market is likely near or at a level where history would indicate it's a good time to re-invest, saysDavid Krein, senior director, institutional markets, Dow Jones Indexes.

According to Dow Jones Newswires: "On Thursday, consumer discretionary, information technology and financials led a late-morning turnaround, with one analyst pointing to a rumor of a possible bidder for Bank of America Corp. (BAC) and chatter the SEC might scrap or modify its mark-to-market rules as helping lift equities.

"After climbing about 125 points, the Dow Jones Industrial Average (DJI) was up 71.28 points at 8,027.94. The S&P 500 (SPX) added 10.56 points to 842.79, and the Nasdaq Composite (RIXF) rose 23.63 points to 1,538.68. "

Krein says while it is not evident whether the bottom has been reached, a 40 percent-plus decline in the broad market is "significant" to the degree historical trends show.

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