While the late day run up yesterday shook out some bears, they came roaring back today and stopped the bulls 5 points away from closing this morning’s S&P gap. Double-dip recession talks made head line news again. This is the four time S&P 500 will be testing key support at 1120 to 1125. We also have key big cap stocks breaking down which could bring in another leg of this decline. Despite the talk about a TARP-like program in Europe, it is anticipated that Greece will still default and cause a large ripple effect. An early October wash out that brings in some buying during mid month could be one scenario.
