This whole mess begin with mortgages, and its about to get a second wind which is why a lot of traders are expecting that the stock market is going to drop into 2010.

Here is the Adjustable Rate Mortgage schedule beginning in Jan 2007:

The markets have been trading exactly as they should be. The move we have been experiencing to date is a perfect bear market bounce.

There may be some upside in select names, but the cracks are starting to show. Lower volume with increasing price, transports and real estate lagging the markets, all these could be early signals.

Like all bounces this too must end. Here are my expectations for this move:

...

While over extended markets can remain over extended, eventually they always do fall.

The S&P may be due for a pull back soon though.

Thelongranger posted this chart yesterday:

The markets closed the week on a positive note, leaving us the long weekend to ponder on what is to come.

Thelongranger put up this chart for us:

A nice chart by thelongranger in the Stock Market direction thread: