Today’s action featured the DJIA up over 100 points, then down in negative territory, and finally finishing up around 81 points. Financials, particularly Fannie Mae and Freddie Mac are under mounting pressure as the true state of their affairs becomes more widely known. Oil was in stealth mode today, surging nearly $6/barrel as Iranian tensions and the end of the Nigerian cease-fire created more nervousness in the trading pits. So much for the end of the commodity bull market.

Looking forward, if the major indices are going to muster any kind of a rally, they’d better get started soon. Earnings will start trickling out and the news is not looking good despite a solid attempt to window-dress the results by the mainstream financial press. Lower earnings make current P/E’s high, and warrant further correction (lower prices). The economic stimulus checks have been hitting Main Street for nearly 2 months now with the last scheduled to be sent within a few weeks. Once the brief jump in spending numbers wanes, there is not a lot of good news for US markets looking forward.