It is starting to get a little difficult to say which way markets will be heading now, after the greatest rally in equities since the 1930s. While earnings have surprised to the upside and economic data has improved, it remains yet to be seen whether companies can continue to grow their earnings just by cutting costs while the consumer is not consuming in the US, and whether the world economy can ultimately achieve the growth rate again it had before the crisis any time soon. The sudden drop of the Dow from the intraday high of 9620 yesterday to 9539, which still is the highest close since Nov 4 according to CNBC, together with reports from the White House Budget Office that the economy is in worse shape than expected and , are making investors a little wary on whether the uptrend will continue in the next days or whether stocks will give back some gains. Also the comments from the Yale professor Rober Shiller don’t help, the professor doesn’t necessarily think house prices have bottomed, as there was also a false turn a year ago and this could happen again. And oil has suddenly droped around 3 percent yesterday, and since stocks and oil have generally moved in tandem, it wouldn’t be surprising to see stocks drop a little as well today. I don’t expect a significant drop however, but rather a more or less sideways move for the week, with a high probability for further gains. The unemployment figures expected tomorrow could spark a sudden move to the up or downside however, if the numbers significantly differ from expectations.