Consistent and orderly sell off from the start of the day with increasingly fear. Bulls couldn’t or wouldn’t firm up bids. Sell off accelerated after a minuscule rally failed (rally led by Financial Sector, most likely shorts taking profits). In the last half hour of trading, the S&P 500 hit an intraday low of 699.70. A new low since October 1996. Volume was high.

After breaking support the S&P 500 Index is basically free falling. Worst still is that no clear support is to be found apart from guessing on multi-year support levels grounded more in psychology than technical fundamentals.
[caption id="attachment_159" align="aligncenter" width="300" caption="S&P 500 Index Daily Long Chart"][/caption]
News over the weekend of AIG’s record $61.7 billion loss and the 3rd government bailout for the insurer drove down Financial Sectors around the world. Health Sector continued to plummet on fears of profit erosion due to planned budget.
A report from the Institute for Supply Management (ISM) showed manufacturing continued to contract in February.
Oil futures fell more than 10% due to global perception that the recovery will take longer than previously assumed.

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