Gut Check Time

Chains of love
Got a hold on me
When passion's a prison
You can't break free
--Bon Jovi

First big down day in a while with the Dow down 300+ and the SPX draining nearly 40 handles on last nite's Argentine bond default, continued Portuguese bank unease, potential Fed tightening, and Lord knows what other potential catalysts. The Dow, in fact, is now red for the year.

Bulls argue that the market was due for a breather. Bears counter that there's a nasty comeuppance pending.

Either way, the technicals suggest that it's suddenly gut check time for bulls. The SPX is sitting on near term support after easily slicing thru the 50 day moving avg. Volume is picking up, while the oscillators suggest 'room' on the down side.

If the current level doesn't hold, then looks like near term support in the 1880-1900 area, followed by the 200 day moving avg at 1860ish.

Hoofy's heros have come through with stick saves time and again over the past few years. Let's see if they're up to the challenge once more.

position in SPX