Everyone knows the rating agencies will down grade the core countries. The money market funds know it too, and they have already unloaded. When the SP500 down graded US debt, it caught everyone (who wasn't told by Standard and Poor's) by surprised. Hence, global markets reacted fiercely.
Despite today's weakness, all technical significance is still intact.
The dollar. Now overbought, and on its trend line resistance.
They lowered analysts expectations by 4%. Because of this, I conservatively lowered SP500 earnings expectations by 4-5% throughout 2012. As of 12/08/11, analyst SP500 earnings expectations are listed below with a very low expected trailing PE between 12.5-13.5: