Despite news of Bank of America's buying $2 billion in Countrywide stock, the market failed to follow-through on a strong opening. However, the market regained some momentum after lunch and rose a bit from its mid-day lows.
Here's the 5-day chart, which is very encouraging to the bulls. I have given the average two channel lines in red to make them more visible. Also notice there are now several lines of support below the current price. Since the Fed lowered the discount rate, the market has been cautiously bullish, slowing moving up over the last 5 days.
The 5-day chart still has the main problem it it yesterday -- lack of volume. However, we still have a decent rally from the lows of last Thursday. Also note the close is above the 10 and 20 day SMA, which will add some upward pressure to these averages. Finally, the average is over the 200 day SMA which is another encouraging sign.