Not Over Yet...

The market predictably bounced from major support just below the 1,250 level in the SPX, but it's hard to see how this can represent any sort of meaningful "bottom"... The World Cup is just around the corner, and if you are a football-mad investor, you are probably going to make sure you won't spend the majority of your time in front of the computer screen. Hence, I think volatility will continue to be high and liquidity will dry up. Which means one thing: small sell (or for that matter, buy) orders will start pushing this market north and south, like there is no tomorrow -- with the likely direction of equities down. Risk reduction continues. I sense a lot of the big long-only elephants haven't even begun to reduce their exposure. So more trouble ahead? It sure looks that way.