The really bad news is given such bad news in

housing and financial, the 10-year treasury yield still goes up and now stays at 3.85%, only 40 basis points below the current Fed funds target rate. What does this tell? Weak dollar and inflation are in the minds of people. Fed cannot cut rates in this kind of environment.

The market needs even bad news to drop, and the 10-year treasury yield will probably go to 3.60% or even lower, the stock market will then bottom out, temporarily. I doubt this will happen this week.