GE saga

After the BSC saga, C got some funding from private equity,
Wamu got some and the stock market went up from the low of
1270 to 1370.
Most magazines were blaring that we had seen the bottom.

Then comes GE with a warning and the stock tanking 20%.
In a way, that is good for me since i am short GE.

Inflation, 80000 jobs lost in march (3rd month down in a row)
and what is going to cause this market to stablize of go up?

There seems to be enough cash in the sidelines, but a good chunk of
this may be smart cash.