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Stock markets finished down on Friday - the DOW fell 122 points to 7278, the Nasdaq fell 26 to 1457 and the S&P fell 15 to 768 - all this was as expected.

This move downwards did, however, take slightly longer than expected, but most people were convinced that stock markets around the world had risen too far too fast and were due a pullback. Resistance on the S&P for example was around 800 - 806 and that's more or less where it rose to before turning round and heading down, it has since fallen 30 points.

Next week should see further falls on the markets as they have to deal with Treasury's long-awaited and delayed rescue plan for the banks, in advance of the G20 meeting in early April.

So far Tim Geithner has not inspired much confidence and there have been calls for him to go, which is a bit odd as he has just got there, but when you forget to pay your taxes you can expect some flak I guess when you ask people to trust you.

According to analysts the toxic-asset plan is an essential element in relaunching the economy with unemployment rising steadily to multi-year highs.

We can also expect to see figures for sales of new and existing homes, the final figures for Q4 GDP and weekly jobless claims.

Electronics retailer Best Buy Co will also give some insight into what consumers are doing with what's left of their money, along with March consumer sentiment and a report into personal income and consumption in February.

It will be the bank rescue plan however that investors will be focussing on.

The FED's decision to "expand its balance sheet and purchase mortgage-backed securities" gave a boost to the markets but rather than being a positive move it is in fact an admission that things are very bad. So the initial euphoria was a bit odd, but that seems to be the norm for stock markets - irrational reactions before reason sets in (it is after all the stock markets that got the world economy into this mess in the first place by investing in rubbish - so much for the theory that these people are extremely intelligent key elements that must at all costs be retained by the age-old practice of waving large wads of cash in front of their noses - let them go ! Who needs them ?). Very odd behaviour but markets move in mysterious ways their wonders to perform.

So personally I expect stock market news next week to be less inspiring, as markets move back to their recent lows and probably even below them, some say a drop of 20% from these levels is quite possible, as the over-optimistic statements about green shoots fade into the background and reality once again takes hold.

I personally will be cautious and will resist any temptation to indulge in mass euphoria.

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