The market is extended and needs a rest. Afternoon news that Moody's downgraded Portugal's debt had only a momentary impact on the market. Breadth was about even and volume was close to the lightest of the year, but strong action in big-cap momentum names and strength in precious metals kept sentiment positive. The market was unconcerned about relative weakness in financials and semiconductors.
The long side is too extended and the short side isn't working.