Yesterday had it all, the European financial exposure to the sovereign debt crisis, the slowdown in growth in China, a failed attempt to stop the greatest oil catastrophe in history, another Israeli/Palestinian conflict, the weak Euro causing Dollar strength that undermined commodities, and weak technicals. After opening on the morning’s session low, the Dow rallied well into positive territory. Unfortunately, the leadership was all wrong. It was only the most defensive groups that rallied. When Food tops the list, it’s not a good rally. Despite a solid ISM report, the Industrial side of the market was on the bottom of the list. Perhaps some of that is due to concerns that China’s economy will slow or that the Dollar strength will continue to hurt commodities, but this is all within the realm of expectations. Investors would love nothing more than to focus on domestic issues, but we can’t seem to get over the hump that each day starts off plagued by weakness in Asia and Europe. It’s become so consistent that we started to see selling in the final half hour that only snowballed on fears that today’s open would continue the decline. Until we get a sense of stability in European markets, it is tough to see where the volatility ends. On the positive side, the domestic news hasn’t been bad. We need to see that played out in 2^nd quarter profits. At least earnings season is just around the corner. We’ve got a lot of domestic data due out. It just seems as though it will get overlooked as long as the Euro threatens 4-year lows.