After the previous day’s sharp selloff, the S&P 500 reached the low 3000 (3024) before rebounding as some short covering activity took place and bargain hunters stepped into the market. Our daily buying/selling index and our capitulation index reflected this kind of activity. Options trading stood at a fairly neutral level and breadth closed on a strong note: 2479 stocks advanced compared to 1373 that settled down. The weekly survey among active professional managers points out to a more optimistic view of the future direction of the market than the private investors.