Stocks just finished their worst week since March, but Friday left equities on better footing than they might otherwise have had. Buyers emerged at a critical moment to prevent even worse damage to the charts.

Given the timing, some speculate the Federal Reserve’s plunge protection team swung into action. We know the central bank is always ready to intervene, so that would come as no surprise.

This week’s performance in the equity markets will be telling. Last week’s weakness may prove temporary, just as prior bouts did in February and March. History could certainly repeat – particularly if the Fed is stepping in here.

Much will depend on bond yields. Stocks ran into trouble early in the year when the 10-year Treasury yield approached 3%. When rates moved above 3% in May, the S&P 500 stood near 2,700. A drop in yields during the spring and summer corresponded with a move higher in stocks and the S&P reached 2,930 on September 2 ... Read more »