"Man looks in the abyss, there's nothing staring back at him. At that moment, man finds his character. And that is what keeps him out of the abyss." -- Lou Mannheim (Hal Holbrook) Wall Street
Markets may not have exactly looked into the abyss this week, but they certainly took a hard look at breaking support at S&P 1,300 in the wake of Standard & Poor's negative outlook on U.S. debt.
Happily (for bulls), stocks found their character, as well as a spate of strong earnings, and rallied strongly into the tail end of a holiday-shortened week.
Beyond simply technical support, what kept stocks from breaking were upbeat reports from companies like perennial laggard Intel (INTC) as well as the traditional blow-out report from Apple (AAPL). Intel mattered because, to be blunt, the economy simply can't be all that horrible if a company like Intel can be stronger than expected and bullish on its outlook.Read More »from Trading Psych: Macke’s Earnings Rally Edition