After Mondays huge rally on the announcement of the bail out plan the S&P500  went no where, finishing the week less than a point below Mondays settlement.  You might say the rally stalled, or is pausing, depending on your outlook.

I have just finished reading John Mauldin’s weekly E-letter, (you can join the many readers of his e-letter by clicking on his name in my recommended section). Over the years I have been reading his letter he has proved to be the most accurate forecaster of any I have read, and his analysis of the current data is always iluminating.  This week is no exception. He has always in the past been a lot more bullish than I have. Now he is not pulling any punches and is more bearish than I’ve ever read. That is indicative of the negative underpinnings of the market.

So I’m still waiting to see whether the bulls will continue the rally desite the economic data, which is not as good as the bulls would have us believe.  Then this week the G20 meets in London, although don’t expect much to happen from that other than finger pointing. You know the saying that a camel is a horse designed by a committee, well anything out of the G20 is likely to be of the same ilk.  Many claim that is the problem with the European Union as well.

The latest news is a whole raft of regulations to regulate all aspects of the finance industry.  It will be interesting to see if it passes congress etc, and indeed if it does pass, if it is workable. And if it is workable whether it does what the ordinary person wants it to do, or if the big money wangles the rules in their favour again.