That said, this is a rough time, and it's hard to spin the news any other way:
1) Our spy agencies have flat sucked. If WMDs were in Iraq, the spies did not pin down their location well enough that we can produce them---at least not yet. This looks bad. (And, yes, I know, WMDs were not the only reason for going in---which I supported and still do---but they were a primary reason).
2) The constant sniping and RPG-ing of our troops, while relatively, by historical post-war standards, is at low levels nevertheless "appears" in the media (even Fox, which leads with this every day) to be a gigantic problem.
3) The inability to produce living or dead Saddams or Osamas is becoming another spy-related problem. (And I have maintained for months that the latter is dust.)
4) The economy is still labor sluggish, and if that continues, it will drag the stock market back down.
5) The USSC has turned out two pitiful decisions; the U.S. Senate is holding moronic hearings about Rush Limbaugh; and Bush has done himself no favors by backing a "prescription drug plan" and CFR.
Bottom line: events have coalesced into a "bad news" cycle, which happens; the administration and some of its agencies have not performed well in espionage for a number of legitimate reasons; and Bush personally has (I think, because he sincerely believes in the issues) taken some rather liberal positions that are hurting him with conservativse. ALL THAT SAID, FOLKS, news cycles turn; either Saddam will be caught, killed, or some WMDs found; there will be just enough of a terrorist attack on the U.S. to remind everyone that we are in a war; and productivity will at some point (it's an economic law) start to generate new jobs. Given more than a year until the election, I think the GOP will be in good shape, and the media will have egg on its face again.