The market weakened throughout the day and selling pressure in the final hour was relentless. Normally, traders will come in during that time and pick up what they see as short term bargains if for no other reason to capitalize on a quick "pop" in the morning. Not today!
I've posted charts in my previous three posts that show the deterioration in stocks and it continues. After the market closed Moody's downgraded 16 Spanish banks and there's rumors that there's the beginning of a run on Spanish banks. The Spanish government quickly denied the story (what else could they do). Things are getting dire in the Euro Zone periphery as highlighted in this Reuters news story (http://www.reuters.com/article/2012/05/17/spain-idUSL5E8GHH1220120517?feedType=RSS&feedName=bondsNews
Facebook's IPO (Initial Public Offering) is scheduled to go off at 11 AM EST tomorrow and some are pinning their hopes that the anticipated well received IPO may change the mood of the market. I'm not sure. Facebook may have it's own party tomorrow but I'm skeptical that it will pull this market higher. Another possible catalyst for a bounce is the upcoming G-8 meeting this weekend where one could make the "reasonable" assumption that something concrete would come out of the meeting that might bolster the market. But nothing reasonable has come out of the Euro Zone for the past few years. Certainly nothing reasonable has been coming out of the mouth of Greece's Tsipras or Germany's Merkel!
With all that said, the market is oversold although that doesn't mean it couldn't get more oversold. My gut tells me we have a better than even chance this market may have a hard sell off going into the weekend.
Finally, look what "perked" up: