Do you think the markets will Rally off a bottom any time soon into a sustainable Bull Trend? I don't. I see further subprime issues weighing on the markets for months to come. As I see it this will place further pressures on the overall markets. Many more financials will have to come clean with writeoffs before this market can even think about putting in a bottom and sustaining an upward trend. The economy is teetering on recession. Actually we have been in recession but the data is lagging for the markets. The markets are trying to figure out how deep and how long this recession will play out. The markets have priced in a recession but the markets haven't priced in how long and how deep this recession will be. Watch out below! Oil at $108 a barrel, massive foreclosures to come, food and energy inflation playing on the U.S. consumer, the mortgage market is dead and the people of this country involved in real estate, mortgage writing, home building, auto sales are hurting. They aren't making any money and they are hurting and won't be spending. The U.S. economy is a consumer driven economy. People aren't spending it is just right now catching up with the average joe. That is why we will see further downside weakness in the markets. There will be rallies trade them accordingly. Happy Trades! I'm still short the housing and financial sectors.