Is the Syrian rhetoric really to blame for this more than expected weakness, I highly doubt it.  In fact I can barely keep a straight face thinking how ludicrous the idea that potentially striking Syria is bringing the equity markets down.  The simple fact is that this is weaker than expected action for a 1st Cycle Low decline and there appears to be some significant distribution occurring in this market now.  I firmly believe that the more dominant weekly and monthly Cycles are topping out here, but one should not expect the equity markets to simply roll-over.  We’re still seeing a massive influx of retail and margin debt capital which will continue to sustain these markets for the immediate future.

For time being though sentiment has reached fairly extreme (negative) levels and the Cycle has stretched to 46 Days (Average is 38 to 42 days).  Based on the recovery this morning and now a confirmed Daily Swing Low we have to assume that we just left behind a slightly stretched (46 days) Cycle making this just Day 1 of a new Cycle.