Option activity from the CBOE say that the markets are more fearful then bullish as the Put/Call ratio ends at .98 - pretty much a 1/1 ratio.
The Bollinger bands say the bears may still control the current trend but in an oversold trend a correction is likely, meaning we may get additional or at least some token buying pressure so that values move back in the range of the bands.
Fundamentals remain uncertain simply because recent earnings projections don't include much in the way of new jobs from corporate America. TXN, AMGN and AAPL all reported earnings today and numbers beat expectation with a positive outlook from them as well. HAL, on the other hand, missed earnings projections but is not an overall market bell weather. With the upbeat numbers from those that beat the street you would expect or at least hope for some signs of a job recovery.
Uncertainty remains on the forefront of the investment community as earnings data continues to be reported and we wait for additional news from the FOMC, the President, the BLS and Congress. Will Bernanke get the nod? If not, who will replace him? Can corporate America translate positive earnings into jobs? Will the FOMC change policy? and Will President Obama inspire the markets to confidence?
Lot's of questions with uncertain answers.
Summary: the market is filled with uncertainty giving the Bears more access to the markets. A positive was that certain support benchmarks have held and the investment community wants to buy, but selling is more on their minds. Hedging trades and being watchful makes sense. If you're uncomfortable with the uncertainty, then going to cash or adding protective option strategies are prudent.
Disclosure: long aapl with option positions