Negativity is just so pervasive. Its got the market by the balls. On Monday I posted a 'heads up' post about the rumor mongers attacking the EU banks for their leverage. Today we are seeing that pan out with the NY Fed requested funding data, yesterday getting news about an EU bank borrowing $500M in 7day emergency liquidity and of course the issues that happened prior to the shorting ban.
The only positive note is that the ECB has calmed the sovereign debt market, for now. But it seems there is a group of hedgies hell bent on causing trouble. If they can't do it via sovereign debt, they will do it some other way. The way to take care of these characters is to provide a real solution. At what point will the EU get their heads out of their ass, and act? (Its not a question of if they will act, they will act, its just a matter of how much damage they are willing to see.)
Outside of the obvious frustration, internals look interesting. Some stocks have reached their bottoms from last week, others are really close. This could become relevant, so I am paying close attention.
As for the market, from a pure technical perspective, it could test its 1120 level.