Some strong earnings out this morning, and that appears to be the only thing holding the market up. Anything cyclical is getting beaten up. Also oil service, refiners, and anything related to homebuilding. Wall Street appears more interested in tech names in the short term as Apple (AAPL) will report after the bell.
I'm pretty cautious right now. Obviously a correction is long overdue, but its hard to get too bearish with some solid earnings coming out.
From a value standpoint, some of the financial names are looking attractive. They have been hurt by the mortgage and credit questions, but they are still experiencing solid growth, and are returning a nice dividend. Bank of America(BAC) is trading below 9x forward earnings, and with a coming dividend lift will be yielding around 5%. I'd be a buyer especially if the subprime issues cause it to fall to the mid-40's.