I'm surprised that the market has not been able to put together a better bounce today. We started off strongly but have trended steadily lower all day. If it weren't for a bit of strength in oil, commodities and WMT, the indices would look substantially worse.
What is notable about this action is that the dip-buyers simply aren't showing much interest. The hallmark of our massive rally was the aggressiveness of the dip-buyers. We didn't even have to go red for the dip-buyers to rush in.
Perhaps the dip-buyers are paying attention to the supposedly poor technical condition of the major indices. The S&P 500 failed to make it back up to 1150 and now it is dangling around 1130 with no support in sight for 30 points or so. It is not an inviting spot to do much buying, for those that believe in that stuff.
The main reason given for the lackluster action is continued pressure on the euro and now some talk out of Germany about a ban on naked short-selling and support for a financial transaction tax. David Cameron, the new prime minister in the U.K., is solidly against a transaction tax, but the bottom line is that Europe is a mess and the impact is seemingly not contained.
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