The European crisis of confidence continues to undermine world markets.
Looking at breadth measures in the US equity markets, there is still no signs that selling has reached its climax.
If anything, the weakness remains very widely spread.
From a valuation perspective, it is likely that this widespread weakness is throwing up opportunities to accumulate specific stocks. But until we start to see market breadth strengthen into weakness, the odds remain with the bears for the broader indices. Watch for government intervention in some form or another as the most likely catalyst for a rebound when the time comes.
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