MADISON, Wis. -- Measures by the governments to get national and worldwide financial systems back on track coupled with the stock market flip flops may lead to an increase in short term selling.

"Until we get implementation of the new tools for 'unclogging' the financial system, which should bolster confidence and spur economic activity, the path of least resistance for short term traders is to sell," said Bruce Ebel, managing director, portfolio manager for MEMBERS Capital Advisors in the company's Oct. 15 MarketLine report. "This trend could reverse quickly since it is not grounded in facts. Rather it is grounded only in worst case fears, an improbable outcome given the attention already given the problem."

Ebel said recent macro-economic data is "clearly weak, indicating we are in the recession, raising questions about the length and depth of the slowdown." Retail sales dropped sharply in September and real consumption fell for the first time in 17 years, he added. Major trading partners such as Europe and Japan will feel the effects of slowing U.S. consumption, Ebel said. He also pointed to regulatory changes and third quarter corporate reports as other signs of uncertainty.

"[Presently], we are at a difficult juncture for the market and economy, resulting in a higher likelihood of short term selling pressure," Ebel said.