Well, as far as the markets are concerned (and they are decidedly not the economy), we're in an area of great indecision. We're right on the verge of a potential inflection point, but it's hard to know which way it will go and how much signal-versus-noise there is in the typical end-of-month shenanigans. Next week should be interesting.
As far as the general economy is concerned, everything--unemployment, foreclosures, consumer spending, etc., etc., etc., keeps getting worse. Even the so-called good news is really bad news camoflouged. As an example, new orders for manufactured durable goods in the United States increased in April by 1.9%. Exclude defense spending, however, and orders in the rest of the economy actually decreased by 2%. Now, a job is a job, and a dollar of GDP is a dollar of GDP, but there will come a time when the US government will realize (or foreign bond investors will make the US govt realize) that it can not continue to spend more than half-a-trillion dollars annually on the military.
Conclusion: Fastern your seatbelts we're still in for a hell of a bumpy ride over the next few years.
P.S. Specific to Canada, we learn that the federal government has underestimated the extent of the budget deficit, and the BC government has come out and said the same thing. Whocouldanode?!?