By Jason Simpkins Associate Editor Another fresh round of economic data was released yesterday (Tuesday) with the prognosis looking dire for the U.S. economy. Home prices as measured by the S&P/Case Shiller composite index of 20 metro areas fell 1.4% in April from March and slumped by a record 15.3% over the year. The group’s composite index of 10 metro areas dropped 1.6% in April, making for a record 16.3% annual drop. According to the S&P, 13 of the top 20 metro areas are still posting record annual declines with price losses in the double digits for half of the areas. Story continues below… Sign up right now, and we’ll send you an important new report for free: “The Three Best Investments in Asia.” ...

“Put your seat back forward.”

Well, my travelin’ days are over for awhile. When boarding the plane in LA to return I noted with sadness George Carlin’s passing. And, when the flight attendants gave the above noted obligatory command I couldn’t help but remember his irony: “How do you do that?” he’d joke.

RIP George.

So, what’s been goin’ on while travelin’? For us conferences, interviews and panel discussions while for Mr. Market, more selling.

To say the market is oversold is an understatement especially with the cumulative negative breadth. [Again, forgive Yahoo/Finance’s math…they know not what they do.]

The cumulative negative breadth is what feeds the McClellan Oscillator’s reading.

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In Friday’s essay I warned that stocks were headed for an ugly autumn. Looking at Friday’s action—the S&P 500 fell 3%— it’s possible the trouble is already here.

As I’ve mentioned several times on these pages, the market rally post-Bear Stearns was largely facilitated by phony economic data courtesy of the US government, the Federal Reserve pumping dollars into the system like there’s no tomorrow, and dumb money piling into stocks, thinking the worst is over.

Looking at these trends, as well as the market’s declining volume— a telltale sign of a “sucker’s rally” —I forecast that eventually this web of lies and frauds would come undone and the market would enter another fierce correction. Friday may have marked the beginning of this.

I strongly suggest you take steps to protect your portfolio now, if you haven’t already done so.

The first thing …