Before the Open (Jun 7)

Good morning. Happy Monday. Hope you had a nice weekend.
The Asian/Pacific markets got hit hard – many lost > 2%. Europe is currently down across the board – losses aren’t great. Futures here in the States point towards a flat open for the cash market. This is much better than the 15-point gap down the futures were suggesting in the middle of the night.
As of last Thursday, the market wasn’t doing too badly. The indexes were at 2-week highs, and although the intermediate trend was down, the near term was at least improving. One trading day later things are different. Friday was one of the worst days we’ve had since the market topped. Instead of being at 10-day highs, the market is near its lows.
Here’s the 60-min SPX. There’s nothing bullish about breaking down from a bear wedge.

Zooming in, here’s the 15-min SPX. For what it’s worth, there are a couple unfilled gaps above, and if the index can quickly and easily reclaim 1070, you could argue the market is still in consolidation mode.

Longer term I am still of the belief the trend is down. Shorter term anything goes. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers