Rational or not, market is hanging in there

We've been around that 8,500 range in the Dow for some time now and have been getting some initial signs that the downturn might be stabilizing.

The National Association of Realtors announced this week that pending home sales were up again for the fourth consecutive month.

The Institute for Supply Management Index, which surveys purchasing managers at manufacturing firms, also showed resilience and slower contraction, according to MarketWatch. The index had the most favorable reading since last August.

We've been bouncing up and down in the 8,400-8,500 range since at least early May - another indicator that may point to some levelness and possible upward movement in the future.

But a few favorable numbers aren't enough to support full conviction, those in the bear camp say. In other words, proceed with caution.

Brian.