The rhetoric coming out from Bernanke says to me that more rate cuts are coming. Earnings are coming in ok for now, but the next couple of days will tell us more. He isn't talking about inflation as a key issue, like he was prior to last months cut. The inflation talk is what had everyone worried that he wouldn't cut. Now all the talk is weakness in credit and housing markets, and that key line "The Fed will act as needed." Same thing he said right after he cut in September.
The media keeps reminding us of the 20 year crash anniversary, and the "Can it Happen Again?" headlines, which guarantee some interested viewers. Keep in mind, they are trying to get ratings, just like any other news outfit.
I think we're in ok shape right now. Earnings will be a big factor right now. We could move lower if we see some weaker outlooks ahead. But I think we'll see another rate cut at the end of the month which will boost stocks again.
So, take it for what its worth. Stay tuned.