The dip-buyers hesitated at first to jump in, but they've inched in a bit now and have us off the early lows. I suspect that these aren't long-term buy-and-hold buyers this morning. Rather, they are looking for a quick flip and well retreat back into cash very quickly. Many things are oversold enough to produce some sort of bounce, but the overall picture is so poor, no one is going to feel any need to rush in and put capital to work.
Breadth has improved from early levels and is running a bit better than 2-to-1 negative. Gold is seeing a little bounce, but watch for any move to be quickly flipped. The bears have gained a lot of confidence lately, and they are going to be looking to short strength. The only fear the shorts have right now is another "Europe is saved' headline, but even that will be greeted with great skepticism.
In this environment you need to have either an extremely-short-term time frame for some quick trades or a very-long-term time frame with plenty of room to average in. For most people, a very high cash position is probably the way to go.
I'm dinking around with a few small trades, but until the action improves I'm not going to be putting much capital at risk.