Quite an ugly reversal this morning. I don't see any real news - the market was selling off way ahead of these fugly new home sales figures. With sentiment so poor I thought the news of a framework for an eventual European bailout would spring this market at least for a day, but not so much. Apple (AAPL) id won around 35 on news it has cut back orders for iPads by 25%, which seems to have spooked the market. Some are speculating Foxconn is moving some production to Brazil, hence the cutback in China, but the reason doesn't really matter. If the stock everyone is hiding in can't rally, the market is going nowhere.
1120 continues to be a level every human (and his/her computer) is staring at. I would have thought it would have broken by now, but an immense fight to support that level each time we hit it the past 2 months. Based on how poor the set up is technically, it seems like this level will finally crack.
What is being somewhat lost in the Europe mess, is the global economy appears to be slowing dramatically. Next week is the doozy for global data (PMIs, ISMs, unemployment report).