We're near the close of a rough week. Dow is still down about 150 at 13,100 & declines are about advances. Banks, had a terrible week, rallied at the end thanx to bargain hunters. Bank of Amer said market dislocations will impact this quarter (i.e. sounds like what I predicted earlier today). They don't have major sub prime problems, instead collateralized debt obligations (CDOs), uh-oh. This problem will affect all major banks.
The VIX index (volatility) is up to 28, very high indicating that 1-2% daily moves in the Dow are more likely. While not good or bad, this could keep the nervous types from jumping back in. Look for a bumpy ride again next week.