We had the exact opposite action compare to yesterday, plunging 200+pts in the last hour after a failed recovery attempt. Banks were devastated again and led to relentless selling in many stocks. Breadth wasn’t nearly as bad as Monday and new lows contracted, but positive divergences still do not make today’s action feel any better for bulls. France’s potential downgrade, Euro-Banks concerns and big jump in CDS will continue to add to a long list of concerns. One bright spot is CSCO earnings are well received and could provide a spark in a very gloomy environment. The buyers did put up a fight all day unlike the other 500+ point drops but the 2008 bank analogies were just too hard to shake. It may not mean a thing tomorrow when S&P downgrade France, but some signs of stabilization are beginning to show up.
