One by one, the key indices appear to be breaking their support lines.

The Dow Industrials were the first to break, but the S&P 500 has also fallen through its support zone at 800 to 820, and so has the NYSE Composite. Only the Nasdaq is holding above its January low while the others are in a full test of their November bear market bottoms.

But despite the full attack on the bear market low, it would be dangerous to assume that a market sell-off is inevitable.

Small cap stocks have lagged the broader market for most of this year. Through early this morning, the Russell 2000 index -- which has an equivalent exchange-traded fund, the iShares Russell 2000 Index ETF (AMEX: IWM) -- has dropped by 4.3%, while the S&P 500 index has gained 1.7%.

Nonetheless, with investor optimism at multi-year lows, the prospect of another Fed rate cut at the next meeting on December 11th, and some reassuring news from the financial sector, share prices could be bolstered in the near term by some contrarian bargain-hunting.

Technically speaking, the Russell 2000 has formed a bullish double bottom on both the absolute and relative charts. Given that, small cap shares may be just the way to play a near-term corrective bounce.

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.

There is an outfit in Columbia, Maryland that makes nutritional substances from microbes. It sounds odd, but the stuff must be good. It is found in almost 90% of all U.S. infant formulas.

Martek Biosciences Corporation (NASDAQ: MATK) provides natural products derived from microalgae and fungi. These include nutritional oils, which are used by makers of infant formula, nutritional supplements, and food and beverage fortification products. Martek also offers contract manufacturing services for the production of enzymes, specialty chemicals, vitamins and agricultural specialty products. Further, it provides fluorescent detection products, used by researchers in drug discovery and diagnostics. Customers include Dean Foods Co. (NYSE: DF), General Mills Inc. (NYSE: GIS) and Kellogg Company (NYSE: K).

The firm pleased investors last week, when it reported Q2 EPS of 15 cents and revenues of $76.7 million. Analysts had been expecting 15 cents and $76.3 million. Management also guided Q3 EPS to 18-21 cents (17 cent consensus), Q3 revenues to $77-$80 million ($77.90M consensus), FY07 EPS to 62-66 cents (61 cent consensus) and FY07 revenues to $301-$306 million ($301.67M consensus). MATK shares popped through 200-day moving average resistance into the initial stage of a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside. Note that the move into the flag completes the formation of a "double bottom" pattern, another bullish sign of further gains.

Brokers recommend the issue with two "buys," one "hold" and one "sell." Analysts expect a 35% growth rate through the next year. The MATK Price to Sales ratio (2.78) and Price to Book ratio (1.56) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 82% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $19.64 and $30.84. A stop-loss of $19.95 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

The identification of new business trends and the subsequent implementation of strategies based on those trends is vital to corporate growth. When firms need help along those lines, they often turn to a Hamilton, Bermuda consultant that currently works with two-thirds of the Fortune Global 500.

Accenture Ltd. (NYSE:ACN) is the world's largest management and technology consulting firm. It offers clients enterprise integration, human resources, strategic planning and supply chain management services, across eighteen industry groups. The company operates from more than one hundred offices in forty-nine countries.

Last week, Accenture reported fiscal Q2 EPS of 47 cents and revenues of $4.75 billion. The Street had been expecting 42 cents and $4.68 billion. Management also guided Q3 revenues to $4.9-5.1 billion ($4.87B consensus) and FY07 EPS to $1.88-1.93 ($1.87 consensus). Six brokerages subsequently declared the stock a "buy".

When you want to network a big business, there are any number of firms that would be glad to help you. If you only want to connect a few systems, though, there is a company in Santa Clara, California that has what you need to do it yourself.

Netgear (NASDAQ:NTGR) provides networking products that address the specific needs of small businesses and home users. The company's hubs, routers, switches, servers and interfaces enable customers to share Internet access, peripherals, files, digital multimedia content and applications among multiple personal computers and other Internet-enabled devices. The firm sells through distributors, to retailers, to service providers and through its online store. Netgear uses third-party manufacturing contractors in China and Taiwan to produce its equipment.

The company surprised the Street last week, when it reported Q4 EPS of 43 cents and revenues of $164 million. Analysts had been expecting 37 cents and $158.6 million. Management also guided Q1 revenues to $160-$165, versus consensus of $159.56 million. The CEO attributed success to the introduction of twelve new products in the fourth quarter and to a solid growth rate of revenue from service providers. NTGR shares completed a "double bottom" formation on the news, popping through 50-day and 30-day moving average resistance into a bullish "pennant" consolidation pattern. Stocks frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside. The 30-day curve now appears to be offering support to the pennant.

Brokers recommend the shares with two "strong buys," four "buys," six "holds" and one "sell." Analysts see a fifteen percent average annual growth rate, through the next five years. The NTGR Price to Sales ratio (1.67), Price to Book ratio (3.26), Sales Growth rate (34.65%), EPS Growth rate (59.26%) and Return on Investment (15.51%) compare favorably with industry, sector and S&P 500 averages.

Institutions hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $16.85 and $31.31. A stop-loss of $25.10 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.