I believe that the market is likely to trade in a range for the next few weeks. The low end of the range will likely be somewhere modestly above this weeks lows while the high end is likely around 1360 on the S&P 500.
The downside is supported by the intermediate term oversold condition, the negative sentiment and the recognition that when push comes to shove that the authorities are not likely to let a complete collapse occur. Likely to cap the upside are the uncertainty in Europe, seasonality and worries about the economy. More decisive moves out of Europe would likely send the market towards its yearly highs but it has not paid to hold ones breathe for action out of Europe.
I think the market is likely to visit the higher end of this range but there is risk to thew low end of the range if we get another scare out of Europe. My plan is to trim exposure towards the top of this range and add towards the bottom.