Despite being the second longest selloff since the March 2009 bottom, there has not been significant emotion to this selling. Aside from one day I can't recall much panic at all. Do we 'need' panic to create a bottom. Not always. But it sure helps. As we sit right above the 200 day moving average (yet again) another rule comes to mind - the more times you test a level (support or resistance) the more likely it breaks. We have been testing this 200 day quite often the past few weeks. I still believe it breaks, and we finally get our panic and people throwing in the towel. Then I'll be interested in a tradeable intermediate bottom.
This morning's consumer spending numbers, in a word, suck. But as gas prices tumble, we should see a rebound in the coming months. Also auto production should bounce back August-ish so for once I might be somewhat more bullish than others ;). At least for a while. [Obviously this assumes Greek gets its bailout and the Greek people and government are happy to bail out German and French banks]
Talk in D.C. is the Dems want another stimulus program as part of the debt ceiling negotiations. The patient needs its constant steroids, and the last batch is wearing off.