The volatility certainly hasn’t left this market yet. May was the worst May since 1962 and the worst monthly performance since February 2009. Europe was the overwhelming catalyst for the market correction, but it wasn’t the only factor. After the S & P’s year-long 80% rally from the March 2009 low, we were overdue for a correction. The seasonal factors, “sell in May and go away”, may have also played a part. The stubbornly high unemployment rate will continue to plague investors for the rest of 2010, and that reality is coming to bear. However, the attention and market correction has been centered on the debt crisis in the Euro-zone and the impact it has had on the Euro and corresponding impact on the Dollar. Friday was no exception. Fitch’s downgrade of Spanish debt roiled the markets late Friday afternoon. Investors were likely already nervous about being gone for the long weekend and so much uncertainty still plaguing Europe. This was enough of a catalyst to kick the bears into action. Money flowed into the traditional defensive areas, Treasuries and defensive sector stocks. The market decline was not a panicky as previous Europe-based selloffs. The Euro’s fall to a new 4-year low this morning is keeping the pressure on. Technically, last week’s “bounce” did little more than pop the S & P back to its 200-day moving average at 1104. That should be our short-term resistance. Meanwhile, the recent gap up from a close of 1068 is our target for support, consolidating this week.