Last week Thursday I noted that the market looked shaky. Friday's employment numbers missed which spurred a massive distribution day sell off. Then over the weekend elections in France and Greece sparked fresh uncertainty, driving futures lower heading into today. By the open though the indices only started trading with a small downside gap which was filled by the day's end.

Looking at the market as of the close, it's hard not to have a bearish outlook. Last Friday's massive distribution day served as confirmation of further downside and we should expect more of it moving forward. Maintaining a healthy cash position continues to be the way to go.

Every 1 - 2% down there will be more and more calls for government stimulus to prop up the market. 1275 was the level we saw support step in last summer so with that as our guide we still have some fall room yet. I wonder where we'd be right now if institutional investors knew there was no bullets left in the stimulus chamber. Interesting to think about.

Stay frosty out there.

Original post: Market Recap - Bears are Back in Control