The bears are working hard to generate a little "sell the news" action on the Greek austerity news and the mortgage foreclosure settlement and they are actually having some success. We saw one brief bounce attempt and now the market is back at the lows and looking at yesterday's support.
Apple (AAPL) is covering up quite a bit of weakness out there so the Nasdaq is a bit misleading. Breadth is running 850 to 1400 negative and falling. Gold is leading and banks are up on the mortgage settlement but oil, steel, retail and chip stocks are in the red.
We saw similar action the last two days but the dip-buyers stepped in and bailed the market out with strong closes. It is when those dip-buyers finally back off that we will have a change in market character. A weak finish will embolden the bears -- especially if the dip-buyers are turned back late in the day.
I have been moaning about holding very high levels of cash the last few days but I'm feeling better about it now. In fact, I'm so underinvested that I'm inching into an old favorite, Flotek (FTK), which is testing support around $11. But I'm going to stay patient and see if the bears might finally manage a victory for the first time in 2012.