Look for the S&P to Fall Below 600: Analyst

http://www.cnbc.com/id/30298461 ^

[FromLori]

Wall Street has notched up its best six-week winning streak since 1938, helped by better-than-expected results from General Electric [GE 12.39 0.12 (+0.98%) ] and Citigroup [C 3.65 -0.36 (-8.98%) ].

And Asian markets to a large extent, have been getting their cues from how U.S. stocks have performed. So are we setting ourselves up for a much larger correction, if and when a correction occurs, or have the internal dynamics of trading in the markets changed?

(View full Kirby Daley interview on the left)

"Well the internal dynamics have changed from last year ... it's very positive right now," Kirby Daley of the Newedge Group told CNBC. "But the fundamentals in the economy that will back up a sustained equity market rally here in Asia and around the world have not changed. This is still a bear market rally. It will end when equity markets in the U.S. begin to falter, and that will be sooner rather than later in my view," Daley adds.

[Need4Truth]

I’m betting this guy is closer to reality than all the optimism we’re seeing right now. Here’s one reason why:

“Small business optimism sinks to a new low

The NFIB index for March was released yesterday. This is a monthly survey of small business sentiment and it declined for the fourth month, in a row to 88.7 from 90.4 in February. The last time it was this low was back in April 1980. While it was inflation and not deflation that was public enemy #1 at that time, we seem to recall that the next sustainable economic expansion and bull market were, oh, only more than two years away.”

http://globaleconomicanalysis.blogspot.com/2009/04/small-business-plans-vs-optimism-about.html

Small business is tanking. The stock markets, over time, correct for the fundamentals of the economy.

[Texas Fossil]

Reality Check-

Look at this Map and the data and tell me when you expect a recovery.

Job loss/gain in U.S. in 2007-2009

http://www.slate.com/id/2216238/

Look at it 1-month at a time with successive frames.

The NE, East, Great Lakes and California have been devistated since the November Elections.

There will be no financial recovery until Obozo is out of office.

[RC one]

that’s a scary link there. I agree that, despite the modest gains on wall street, no true recovery will occur until main street is attended to. It’s a popular meme to suggest that the unemployment is a lagging indicator but I think that, regardless of whether that is ever true or not, it is not the case here because this recession is a result of deflationary pressures, not the typical inflationary presures. Deflation is a rare enough event that most folks don’t understand it let alone know how to correct it. The rally on wall street suggests a lot of unfounded optimism bolstered by the talking heads. The pros all seem to agree tough, there isn’t much to be optimistic about right now and that table showing the unemployment trends is a good example of why that is.

[Recovering_Democrat]

No way. We are experiencing the Hussein Miracle. The Master's Hand has touched our corrupt financial world and all is now well.

< \LameStream Media Kool-Aid>

[Vaduz]

better-than-expected results from General Electric [GE 12.39 0.12 (+0.98%) ] and Citigroup [C 3.65 -0.36 (-8.98%) ],wonder if fuzzy math is being used again?