We'll keep this morning's comments very brief because the most frequent piece of constructive criticism I've received from readers is that I'm too wordy. Guilty as charged! But more to the point, I had trouble getting out of bed, having returned to the homestead in the wee hours of the morning. I could blame Oracle's (ORCL:Nasdaq - news - boards) warning and its collateral damage for my situation, but there's a much better reason for my brevity. I had the distinct pleasure of attending United Cerebral Palsy's 15th annual Champagne Stakes, which honored Cramer Berkowitz's president and head trader, Todd Harrison.

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Apocalypse Now?

As for Thursday's market action, it was another dismal day until the final couple of hours. After the S&P 500 March contract took out last week's low by only a point, things really got interesting during the Insana Hour. A strong rally ensued after an analyst made some positive comments about the state of IBM's business, and the bulls were in charge at the final bell. However, just when it looked as if the oversold bounce that almost everybody has been waiting for would change the tenor of this market, if only for a brief shining moment, the news after the close cast a pall on Friday's outlook.

Oracle's warning sent tech stocks, particularly in the software group, into a tailspin that erased many of Thursday's solid gains. When it rains, it pours these days, as Mr. Market rubbed salt into the gaping wounds of those who've been catching the falling knives in techland. On the bright side, perhaps this latest piece of bad news might be the beginning of the capitulation that's necessary to make a bottom.

The Economic Factors

In any event, Friday morning's University of Michigan consumer confidence report is likely to reinforce the notion that if the economy isn't already in recession, it's probably entering one right now. The National Association of Purchasing Management report, while stabilizing, remained below 50 for the seventh consecutive month at a level that's indicative of a negative 0.3% gross domestic product. Hopefully, we can finally get the flush out of the way and turn investor sentiment negative enough to at least anticipate a real bottom.