The S&P 500 is set up for a bounce after dropping by 70 points in four days. That type of decline almost always leads to a short term bounce. Unfortunately, the news coming out of Europe keeps getting worse.
At current borrowing rates half the countries in the Eurozone are insolvent. Instead of trying to solve the problem, German officials make inflammatory statements on an hourly basis. I have been of the opinion that it will likely take a crisis but ultimately EU officials will act. The crisis is here and thus far we are not seeing any action. The longer they wait, the greater the action that will be required.