The Last Week in Review:

Friday's market action saw the sixth down session in a row for the NASDAQ, which slid 3.8% last week. The S&P 500 lost 2.8%, while the "smaller" company S&P 600 surrendered a 4.5% loss. Even the Dow Jones Industrials dropped below the key 11,000 threshold. Investors and the professionals who chase them seem to be ever more certain about two things. Fed chief Bernanke's concern over inflation has the bearish camp overjoyed about tighter money, and commodity prices appear to have finally bubbled over.

All in all, an interesting environment for equities as the latest haircut leaves most major market averages in short-term oversold territory. Whether the "hot" money leaving commodities finds its way to equities is still a guess that bulls hope will turn into reality.

Needless to say, with economic statistics pointing to slower growth than had been widely anticipated and interest rates edging higher, we only have one last question. Can you spell "stagflation?" That wasn't a fun time for stocks and perhaps the latest 10% correction is a painful reminder of all things we formerly knew as ugly. Higher prices and higher interest rates aren't good for the market, or anyone else for that matter.

The Week Ahead:

On Monday, Lehman Brothers reports earnings, while President Bush meets with his security council to discuss the situation in Iraq. May producer prices are reported Tuesday, with higher energy costs expected to result in a 0.5% rise, off from a 0.9% rise in April. Goldman Saks also reports earnings which are expected to be up sharply.

On Wednesday, the Fed releases its beige book regional economic survey, while Needham & Co. presents their annual biotech and medical conference. Thursday, the Bank of Japan concludes two days of meetings with no rate changes anticipated, the U.S. Treasury releases a report on foreign purchases of U.S. investments and Bear Stearns reports earnings.

And if that's not enough, Friday is QUADRUPAL witching day in the options and futures markets and Yale Economics Prof Ropbert J. Schiller and David Blitzer, chairman of the S&P's index committee hold a conference on of all things, housing prices.

In summary: who says things aren't getting interesting waiting for Fed Chairman Bernanke's next comments.