What is next for the Dow?

Although the fed cut discount rates, I wonder how much that really affects the long term picture for the stock market. Discount rates really only provide a bail out mechanism for financial institutions. I wonder how much of Friday's bounce was related to a combination of short covering and financial sector recovery. The housing and mortgage issues will undoubtedly extend beyond what has been seeing these past few weeks. For the short term, I am looking to see if the Dow can clear 13,200 and hold the line. If not, I still see resistance at 12,500 and with that in mind there is potential to see another sell off. Only time will tell.