Its all about the debt.

The S&P500 failed to follow through and confirm the possible Cup and Handle pattern (though the handle could still be forming). However recent developments are not favourable, I guess any of the scenarios I mentioned a couple of weeks ago remains possible... The Cup and Handle break-up (Which I feel will be the final hoorah of this 2+ year rally, or a triple top (Or Head and Shoulders) break-down, or more sideways in a large range eventually leading to lower levels.

Much depends on what happens with the debt-ceiling short-term and with regard to the outlook for US debt longer term. --- I just wonder how world and economic history will judge this current time in decades to come.- Longer-term, and to 'state the bleedin' obvious', debt has to come down if the US does not want to undergo some incredibly painful problems in future years. Taking the medicine now will be painful (but ultimately less so) than not taking it at all. This huge and major problem, has the potential to in my opinion undermine US hegemony more than any other external force of the past 100 years, and I include Germany, Japan, China and Russia, plus smaller players such as Al Queda, Cuba, et al.