It comes down to rate fears. The Fed is going to have to get pretty aggressive. We're quite worried about the interest rate outlook.

Once the volatility genie is out of the bottle, he's going to bounce around for awhile.

The worst case scenario is the Fed overdoes it.

Stocks are not reacting to good (earnings) news. Next week begins the real flood of what should be very closely watched reports. If the good earnings news is not able to buoy the market, it's because of interest rate concerns.

To a certain extent, the demands on productivity are so strong and the pace of innovation is so great. There is tremendous pressure and need to spend money on the business infrastructure to continue to maintain and improve productivity.

I think the Nasdaq was facing a lot of profit taking already. Certainly on the Nasdaq today, the Microsoft issue is hitting stocks in general.