Volatility has not disappeared and it may take some time for the dust to settle down and exhaust the selling pressure. In the meantime, our indicators are improving slowly, daily hedging activity is running at a high speed but internal momentum is still weak : 805 stocks advanced on the NYSE compared to 2731 that closed down. The cumulative advance/decline line is still heading south and the list of stocks reaching new lows looks ugly. In summary, the stock market is starting to price a recession that, in our opinion, looks exagerated at this stage of the financial and economic cycle . We still expect to observe some signs of capitulation from various market participants before the stock market may be able to turn around.