mkt today - despite the late bounce, many say this is capitulation

some of the folks, like art cashin on cnbc, who were getting more positive on the market when we were down over 700 Dow points are a little unhappy to see a pretty big bounce in the final hour. That may be an indication that fear isn't as prevalent as thought and the capitulation not a complete one. Ideally, a better low might have come if we had closed near the lows and then gapped down tomorrow morning, but the market seldom acts in expected ways.

As I indicated, I do think that what we saw today was some real capitulation. This was highly emotional and very severe selling. Folks who have been trying to call bottoms in this market all year long finally gave up and then pretended that they've been bearish for a long time.

I suspect that market players were buying in the closing hour in hopes of some sort of worldwide rate cuts tomorrow. We experienced a big turnaround Tuesday last week, and traders like the idea of betting on another one tomorrow. We aren't out of the woods, but I'm sure feeling like we are making some excellent progress.

I would have preferred that we didn't bounce back so quickly and giddily from being down 700 points intraday, but we did manage a brief purge that will make for a healthier market. Now is the time to refine those lists of potential buys so you can act fast as things set up.