the China Shanghai stock market, down 20%, has crossed in to bear market territory.

the Euro zone 2008 GDP was $15.12 trillion compared to the USA 2008 GDP of $13.84 trillion.  Spain GDP of $1.6 trillion is the same size as California.  Greece at $356 billion is the same size as Virginia.  Italy has an economy of $2.7 trillion that is equal to Texas and Mexico combined.

China has a $4.3 trillion economy, much smaller by comparison, but because of their growth rate of almost 10% per year, controls the price of commodities at the margin.  the Euro Zone is reported to be China’s #1 trading partner.

The S&P is reacting to uncertainty as much as a slowdown in the world markets.

Long term – still in the upmove to 1365.  1019 will start a new down move to 821. the weekly cycle has the short retracement underway to 1043.  1200 will restart the up move to 1344.

Daily – still dealing with the “spike”.  the trade thru 1143 has moved down to one point away from the 1111.75 target.  the time pressures are now up.  trade pressures are now up.  1136 will start a move up to 1155.

intraday pressures are hard down, so the next move is likely up.