Those returning from vacation last week pushed the market lower by 100 points at the open, reacting to last week’s slide of between 3% and 6%, depending on the index. Volume was actually rather robust at the open, but quickly evaporated in the afternoon. Yesterday’s action was little more than a technical bounce off of support. There was a little opening gap from late July at 1069 in the S & P. We opened and bounced off of this level, eventually pushing to a small gain in the index. The groups that were hardest hit last week led the recovery. The very defensive groups that performed better on a relative basis last week were a drag on the averages yesterday. That is nothing more than a classic technical bounce. Volume ended the day so light that it is nearly half of the old 50-day moving average pace of 1.5 billion shares. This week is one of the last opportunities before schools start, so the volume is still being impacted by vacation-level trading. Technically, we’re due for a little bounce, but the S & P will face supply starting at 1087. If we get to 1100, by some miracle, it would be an opportunity to short more aggressively. Needless to say, the bears are in control. The trend is down. We do expect to see lower lows in September and potentially into October. The big difference yesterday was that the Dollar was a little weaker, indicating a little less deflationary fear. However, the drop in bond yields suggests investors are still expecting further bad news on the economy. We’ll see if we get help from today’s news.