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Bad news from both Barclays (BCS) and Wachovia (WB) top the headlines with growing expectations that we're going to hear a lot more of the same. As you know, investors are trying to quickly get their arms around how exactly to value these firms but it isn't easy.

Beyond the financials, investors will remain fixated on the tech space. Yesterday's significant pullback in many of the tech leaders is a red flag that trouble is spreading throughout the market. How investors will treat these pullbacks, either as another buying opportunity or whether we see them sell into any strength will provide us with an important clue to what to expect from the market itself in the short-term. Bottom line - continue to watch the leaders.

Premarket gainers: PCLN, NVDA, PCR, DLB, SCON, HTCH, IPGP, DROOY, EZPW, ZINC, PDII, SAPE, KNXA, BKR, and FORM.

Premarket losers: MDRX, CLWR, LEAP, JASO, JSDA, GMKT, NDAQ, COGO, QCOM, CSUN, ESLR, CSIQ, CREE, CRDC, CMED, VCLK, ASTI, SOLF, SOHU, EXM, ACGY, ALVR, NETC, DRYS, FTK, SPWR, CRNT, DSX, RIMM, CROX, CNTY, CMED, JBLU, SNDA, BSQR, DTSI, GMKT, KNOT, and TBSI.

At 10AM we have the consumer sentiment index and this report will be a market mover. The bulls continue to insist that consumer spending remains strong (October retail sales were weak because of the weather) so any new evidence of weak consumer confidence will not be viewed as positively as before. In the past, bad news meant another rate cut, but with the recent Fedspeak the bulls currently fear they no longer have the Fed watching their back. That fear may be misplaced, but it is big part of the current perception and why the market is having a tough time right now.

Have a good Friday and be smart out there today!