The market seems to be going nowhere fast. The bears argue that the economy is deteriorating at a rapid clip and they are correct. While the bulls argue that participants are already negative and holding small equity positions, leaving few to sell. Additionally, companies are buying back shares and there is the potential for quite a few cash deals.
If the Genzyme and Potash deals get done than I believe that the market will hold and possibly even rally despite the poor fundamentals. However, both situations are unlikely to be resolved until after Labor Day. I would also note that there is a lot of supply in the waiting as the IPO pipeline is quite full with GM joining the fray.
All in all the picture is quite confusing. In the short term I still plan to buy a break if it happens between now and early next week.