This is certainly the season for the bears. They were able to break the 2008 lows on the S&P 500, Nasdaq and Russell 2000. The Dow has somehow managed to hold above its October intraday low and I’m sure everybody will be watching that level in the coming days. That Dow low holding seems to be the last hope for the bulls in the short term — and that would be nothing but hope.
The volume hasn’t been that bad but it seems that the market is just falling under its own weight. Not only is the economic & earnings news flow bad but we’ve also got these sickening congressional hearings on TV all day long. There’s really little reason for buyers to be motivated right now — they’re not even getting what’s typically considered capitulation selling.