Italy was obviously the catalyst for today’s vicious selling, but bulls just got too comfortable buying the dips after a big move. As the extent of the problems becomes known and the market begins to understand that there are few solutions, the selling pressure increased. Technically we are still holding above key technical levels at 1220 and, more importantly, the 1200 level of the S&P 500. The weekly close will be important. I am thinking opportunities on the long side will open up into end of year on further weakness.
