What a Week: Bear Blast

The old saying goes that March weather comes in like a lion but goes out like a lamb. Well, in New York, the weather this week went out like a lion, and the stock market likewise went out like a bear.

Traders endured a third week of volatility and mixed economic messages, as the three major indices ended with a whimper. Market-players can't be sure if this correction is turning into a bear market or if it is just a correction. And with Friday's bad weather, many of the "decision makers" weren't on trading desks to step in and buy on the weakness.

Economically speaking, traders could take their pick and worry about slow growth as Tuesday's weak retail sales figures stirred up fear that the subprime mortgage meltdown will cause the consumer to melt down.

But the higher-than-expected inflation data this week puts the Fed far away from a rate cut. Certainly, next week's Federal Open Market Committee is unlikely to veer from the status quo -- moderate economic growth with a tightening bias.

"It's a very difficult call," says Michael Driscoll, director of listed trading at Bear Stearns. "There are a lot of people speculating if the market is washed out or not. There's some bargain-hunting in here, but people are unsettled when there's barely anyone putting up a fight when the market slips to the downside," as it did Friday afternoon.