The fact that we aren't seeing at least a little relief rally when the politicians are fairly close to a debt-ceiling deal is taking a toll on market sentiment today. Many market players were mentally prepared to do some buying once that uncertainty was eliminated, but now they are having some second thoughts in view of how poor things are acting.
Market players are now worried that the problems out there are far deeper than just some political squabbling over the debt ceiling. The GDP and ISM numbers are raising concerns that a double-dip recession is a real possibility, and the very weak action in Europe today is signaling another round of sovereign debt concerns.
The biggest positive we have right now is that sentiment is becoming extremely gloomy, and we are oversold after the sixth straight day of negative action for the S&P 500. The dip-buyers will give it a try sooner or later, but they are obviously waiting for someone else to step up first.