Recent bull rallies in the markets have given investors a chance to recoup. But will a bear rally take over in the markets and exchange traded funds (ETFs)?

Economists and other market watchers think the rally is over as more economic numbers are poised to pour in, reports Michael Gray for The New York Post. The rally was probably sparked by the actions of the President Barack Obama administration and continued on good news from some fundamentals.

The markets didn’t like the unemployment numbers, which showed that two million Americans have lost their jobs since the start of 2009. There are also potentially weak earnings of U.S. companies and details of the rescue plan on derivatives that are looming. American consumer spending is also diminished with consumer confidence at three-decade low for March.

Banking and its toxic assets are up for another round of examination and some banks may even have to be nationalized as a result of the government’s “stress test.”

The financial sector has only gone through a fast patch-up job so that banks may withstand the next wave of assaults, remarks

Mortgage and credit-card default, personal bankruptcies and low consumer spending are still continuing as a result of many small businesses closing up shop each day. Debt for equity swaps and billion dollar bank write-offs may also arise when more corporate restructurings take place.

Watch the trends to see where the United States economy is headed. There’s no predicting what will happen, but there’s no question that we’re still in a fragile place, and a wave of bad news could end the market’s upward mobility seen in recent days.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.