The foreign markets are on an absolute tear, so there's some thought that the liquidity might start coming back into the U.S. markets.

The economic numbers are driving the bus. As long as the numbers remain kind of weak, if it doesn't look like we're getting much of a turnaround, then markets can continue to slide.

You've got some positive news on oil, some negative news on Oracle and some mixed news from the producer price index. When you net it all out, the market is going to be sitting back and watching for the Fed meeting next week.

The important decisions haven't been made yet. You get the impression that there's not much really moving and ask yourself whether the optimism is really justified.

But whether the market is going to have the staying power beyond today, I think we will be able to determine that toward the close,

Investors are chasing commodity prices. Until we fall even lower, though, we're still in a trading range. We'll be very focused on inflation for the rest of the week. Economic numbers are coming a little weaker lately, adding to why the market is reacting poorly.

If you look at how the markets have been trading the last few days, we're seeing a much broader decline. We're not seeing a leader that can carry the day. It's not limited to a few stocks anymore. Disappointment is broadening out during this earnings cycle.

If you look at the difference between PPI and CPI, the numbers have been in favor of PPI. What that means is that corporations are still struggling to pass through price hikes. We should see margin pressures on corporations through the rest of the year.

I know people are focusing in on the dollar, but if we take a look at last week's strong action, our view at least, is that the underlying economy does not warrant it.

The ISM report did have a big impact on the markets, and part of the reason is that the economy is now more of a service economy. And services are going to be much more directly and more immediately impacted by the higher energy prices we have seen.