The market opened down this morning and under some key support levels in the S&P. The November lows of 740 on the S&P have remained strong technical support from any pressure downwards. This is actually a long term level of support that goes back more than a decade. Underneath that ... well lets say there just is not very much support.
So as much as I think this market has more upside than downside, this market is trading on pure emotion and the downside risk still exists. If the market gets much below 740 and stays there, I think you are going to see a tidal wave of selling as people finally give up on this market and just run for the exits. If that happens, watch out below, because there really isn't much of a floor anywhere below.