Like a recurring bad dream the Euro crisis keeps dominating the market. For few weeks there was a respite from the bad news and market rallied. However breadth never took off like we would like to see in big rally.
Add to the Euro problem the lukewarm earnings and hints of slowdown in sales, no Fed action, US drought, talk of fiscal cliff, political uncertainty due to elections and you have a volatile cocktail of catalyst.
Some of these issues have been around for months. The market has not buckled under the weight of these catalyst and has held up very well so far. Will this time be different that is the question.
If we see big breadth days to downside then it will be worrying sign.