According to Mr. Bill Cara’s today’s blog, he said that the people are pulling their bids because of the Obama Administration submitted white paper on Financial Industry Reform.

[7:52am ET] Technical analysts worldwide are reporting the breakdown of significant support levels, ie, a series of recent lows that brought in buying, which indicate that the equity market’s advance since early March is now over, and prices are most likely to slide into summer.

The weakness started a few days ago with alarming economic data, particularly in Europe, resulting in a decline in the Euro and rally in the $USD. The downward pressure on commodity markets and equity markets, which until now has brought in a pattern of buying the dips, suddenly took on a new light as traders pulled their bids. Possibly there was selling yesterday resulting from the uncertain reaction in Congress and on Wall Street to the Obama White Paper on Financial System Reform.

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If bankers feel threatened by stricter guidelines and tougher regulatory scrutiny, rest assured they will voice their displeasure by pulling equity bids, aggressively pushing stocks lower, letting politicians know bankers hold the real power.

So are we supposed to be little cautious? Or hold on tight for another rough ride?