Stocks are still tracking the EURO.

Bearish sentiments have built up in this market.

- EURO Problems
- BP slowing economic growth
- China’s tightening

Cyclicals, materials are taking a big hit as traders short these stocks, betting that the economy is going to slow down.

DOW might possibly correct even more after today, as today’s session shows that there are no buyers at this price. The fear of 9500 or even lower is real again.

Funds may want to get out of some positive positions that they have held for one year, and restart their funds at a lower price. This market is still shaky, but the trend is rather bearish.

The bull market will resume at a later time. Set tight stop loss in this type of market. Some traders are even considering going short here.

The EURO will continue its decline, and that would bring the stock market down with it too. However, I doubt that there will be parity with the USD soon.