Update: One additional thought. It looks so bleak that it seems like the market could catch people off guard with some sort of rally. The financials are actually holding in there and the big money center banks (GS, C, JPM) are actually up. Why? Maybe getting ready for the financial regulation passage? Once it passes, though fundamentally bearish, it could be a sell the rumor buy the news type of thing to cause a decent stock market bounce.
It looks like death out there for equities right now. I was literally up all night. I am not a trader but the futures market gave some great trading opportunities bouncing up and down 5 to 10 points about 5 times.
The even more bearish thing is the dollar is getting killed and the Euro is way up. That has typically been bullish for the markets. Even more interesting is the dollar is down and copper just looks UGLY, gold is getting KILLED, palladium is getting SLAUGHTERED, platinum is getting ANNIHILATED. I heard (and haven't confirmed) that on the German DAX every single stock was in negative territory. That is extreme negative breadth.
We went right down to 1100 which is where the 200 day moving average sits. We hit and what was almost 100% predictable bounced off it. The bounce is a chance to sell into it.
To add insult to injury the next few days the headline risk is huge. Congress and the financial regulation bill. Germany and rumored proposals to reign in countries who are not balancing the budget. Greece and Spain bond offerings coming with a bunch of question marks. Especially Spain. At least currently the bears are ruling. The 200 day moving average is the final stand for the bulls before you get another 5% lopped off.