In This Edition... The bulls certainly fought back hard in the second half of Friday's session, turning yet-another big loss into fairly decent gains. Was this the reversal sign we've been waiting for, or merely a fake-out move? Thoughts on the matter are below. First though, highlights from this week's community commentary include The Wet Seal, Inc. (Nasdaq:WTSLA), Neostem, Inc. (AMEX:NBS), CalAmp Corp. (NASDAQ:CAMP), PAETEC Holding Corporation (NASDAQ:PAET), Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS), and Aon Corporation (NYSE:AON)    Stocks in Focus Technical Outlooks for GTWO, SNSS, and ATHX James Brumley points out how Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) not only fell under a key support line two weeks ago, but how the stock tested the same level as resistance last week, and failed to get back above it. As such, SNSS is feeling the weight of a serious technical burden. Be sure to check out the chart.  Up-Trend Outlook: ARNA, LMNX, PAET PAETEC Holding Corporation (NASDAQ:PAET) finally started to unwind a pretty big pullback, rebounding 11% yesterday on news of opening a new data center... the first of a handful slated for the next few years. PAET had been falling in the shadow of a recent downgrade, but Dennis Askew points out reasons for a different view.  Tapping Into Chinese Healthcare Reform Profits with Neostem (AMEX:NBS) Did investors just simply not understand the upside of the recent Neostem, Inc. (AMEX:NBS) acquisition of Chinese pharmaceutical maker Suzhou Erye? M.E. Garza thinks so, and makes a compelling case for NBS now that it owns such a big piece of China's clinical stem cell R&D business. Some of the data and numbers here are incredible.  Chart Outlooks: NLST, AON, APPA Before getting too excited about the recent rally from Aon Corporation (NYSE:AON), you may want to take a closer, longer-term look at the chart. Though the last few weeks have been pretty productive in terms of progress, AON is on an intercept course for a major resistance level that may or may not be kind to the stock in the long run.  Chart Analysis: CAMP, AGRT, COPY The party may finally be over for CalAmp Corp. (NASDAQ:CAMP) following a major runup from the middle of last year. The stock went into a trading range in October, and finally broke out of it - bearishly - last week. Following the failed attempt from CAMP to break back into that range on Friday, James Brumley's pessimistic outlook looks to be on target.  Looking Forward: WTSLA, SYMM, OFI Dennis Askew is coming out and saying The Wet Seal, Inc. (Nasdaq:WTSLA) is a 'buy'. The retailer just posted its fifth-straight monthly increase in sales, and also upped is fourth quarter profit expectation. Though WTSLA moved a little higher on the news, that fact that the stock didn't rocket out of control means there are some gains left to be reaped on a slow and steady move higher.    Was Friday the Bottom? That's a great question, isn't it? Both sides of the table have some pretty valid arguments that their outlook is the right one. So, before we make a judgment, let's just clarify what's bullish and bearish about the market right now.  What the Bulls Say  The S&P 500 dropped 53 points between Thursday's high and Friday's low (a whopping 4.8% swing in about a day and half), which definitely tests the bounds of how fast and far an index can drop before rebound-speculation starts to push stocks upward again. The bulls would suggest the size of that swing could also hint of a mini-capitulation... sort of the final, painful blow that's necessary to wipe the slate clean and let the buying begin again.  All told, the pullback from the mid-January peak of 1150 to Friday's low of 1044 is - so far - a 9.7% correction, which is more than enough to bleed off the market's excess and froth that's been building since March.  The bullish proponents would also point out how the VIX reached its upper Bollinger band on Friday, and then fall back to a relatively low close. That too indicates a sort of capitulatory spike and ebb in fear that tends to coincide with bottoms, which as you can see has happened a few times since September.  What the Bears Say  The bears acknowledge - perhaps even concede - everything the bulls are saying. They'll just point out that though the 9.7% pullback from the January high is a fairly serious one, it's still not quite big enough to readjust attitudes into something a little less euphoric. It was a blow to be sure, but confidence is still a little too high. Something closer to a 15% dip would do the job, and be a more typical correction.  To really hit a good (i.e. more permanent) bottom, more traders and investors need to be convinced that a bottom has not been hit yet... the majority of the market's participants need to be more certain that stocks can't possibly go higher right now. Yes, it feels like backwards logic, but it's a school of thought called contrarianism - and it's right more often than wrong.  The bears would also point out this reversal action seems a little too easy and too convenient for the bulls. Near-perfect hammer reversals for the indices? Rebounds that occurred right as the next-to-last set of support levels were touched? The market doesn't make things quite that easy. Oh, it offers clues.... just not clues this obvious. Something's fishy.  What We Say  Though our contention is that stocks are closer to a bottom than not, we're actually more in the bearish camp right now than the bullish camp. Said another way, we're still bearish until it's clear and proven that the bulls are right. Too many people found too much confidence too quickly on Friday, and none of the indices have made sustainable reversal shapes with their charts yet. So no, we don't feel Friday was the bottom.  Our outlook remains the same.... a dip to the 1020-ish area is not only the most likely outcome, but would also be a much healthier (and plausible) correction for the long-term bull trend.  Of course, how often does the market do the healthy thing?  Stay tuned - the coming week will prove to be interesting to say the least. We'll have some navigation tips in the next newsletter, and at the site in the meantime.