Does it really seem that long ago? The reliable Santa Claus rally that saw the Dow close above 18000 for the first time two days before last Christmas? It very well might as the Dow and the S&P 500 have taken it on the chin these first two weeks of the New Year.

The Dow finished lower for the fifth dow slides again straight day dropping by -102.17 to close at 17320.71 while the S&P fell by -13.22 points to 1998.05. Since December 23rd, the Dow has shed 700 points in just two weeks. There really is no speculation when the down rally will end as investors worldwide are paying attention to commodities, especially oil which fell again. Oil futures, which tried to continue yesterday’s momentum couldn’t hold onto a 6.00 percent gain and ended lower by 9 percent, a 15 percent swing.

It’s still a guessing game as to the Saudi’s strategy consisting primarily of continued production in spite of the fall. The glut of oil in the marketplace combined with already weaker economies, especially in Europe and Asia, has led to a precipitous fall. The Saudi’s have already said that $100 per bbl of oil won’t happen again which is hardly good news for places like Russia which depends heavily on the sale of oil above $100. If the Saudis were trying to stimulate demand with lower prices so far the strategy doesn’t seem to be bringing any dividends. Fracking along with horizontal drilling here in the States is an expensive process but a worthwhile one as long as oil remains somewhere above $80 but over the past few weeks, $80 seems far away.

Overall, it appears Wall Street could continue its weak showing until the price stabilizes. Mortgage bonds have certainly benefitted with interest rates for mortgages falling yet again today. If the U.S. economy continues to falter into spring the Fed will most likely be sitting on the sidelines and leaving interest rates alone until a recovery can be confirmed.