The decline has been very orderly, perhaps too orderly. What we need is a good dose of fear to washout the sellers and set the stage for a reversal to the upside.
Lots of expected news next week that will have an affect on the markets. The Greek issue remain a key focus. I believe a short term resolution to the problem is at hand. If not lookout below. The big issue here is not Greece itself but the fact that the European banking system owns so much of their soverign debt. Add to this that Ireland, Portugal and Spain are right behind. A Greek dept default could create a domino effect that would have global ramifications.
Our early indicators are pointing to another bounce if not a short-term trend reversal. We are at very important support levels on the S&P 500. It could go either way. I will be watching closely.