Less bullish strategists than Cohen lay out a convincing scenario for weaker corporate earnings. A spreading global meltdown that keeps stocks volatile, shakes consumer confidence, and curbs consumer spending. But a drag on earnings may be offset by a boost from lower interest rates. If the stock market doesn't regain more ground soon, it could start cutting into expectations for economic growth. Down markets tend to slow consumer spending.
Some technical analysts see signs of a bottom.
It shows the number of stocks on the New York Stock Exchange trading above their 200-day moving average. Neither the bull nor the bear camp is likely to declare victory soon. The McGraw-Hill Companies Inc. All rights reserved.