A nasty day like yesterday tends to lead to some short term stability at minimum. In addition, we are nearing quarter end. I believe the odds are now slightly favoring the bull camp for the balance of the week. The reason I say only slightly is because the market remains short term overbought. Its possible that we will not be maximum short term oversold until the July 4 holiday.
The news is undeniably bad but the valuations are good. The trillion dollar question is how will the bad news effect earnings. I remain of the belief that in order to get a lasting decline in the market earnings will need to take a large hit. Even if the economy weakens that is far from a sure thing.