After a modestly positive start to the day, investors were battered into submission from negative news on French banks, Spanish debt, and continued concerns that China’s promise to let the Yuan rise was mostly rhetoric. The poor Existing Home Sales, down 6.0%, was unexpected. After all, these sales figures for May are in the sweet spot of the June deadline to close on purchases to take advantage of the tax credit. The Richmond Fed, another regional survey, came in better than expected, but New Orders slipped. This is one of the early June reports, and investors are already on the fence about a double-dip recession. There were a few earnings reports that were disappointing. Earnings are expected to be the catalyst for the bulls. The early results have been less than inspirational. Technically, the market was already pulling back from resistance at the 50% retracement level on the S & P at 1130. Initially, the index did find support at its 200-day moving average, validating it as a support point. It may have been the worries mounting on the Energy stocks after the Obama administration said it would fight an appeals court decision reversing the moratorium on drilling. This means they are serious, and may even look to extend the moratorium longer. The XOI fell 2.2%, breaking the S & P below the 1110 level, its moving average. Given the fact that we only have New Home Sales and the FOMC meeting to look forward to today, the bears had an easy time pressuring the averages. Look for some consolidation action today.