So far today the ES has developed a day session range of 1178-89. As I write this the market is trading at 1186, in the upper part of that range. I judge this to be a bullish performance in light of the high volume selling that occurred this morning after Spain's debt was downgraded by S&P. In fact the ES is now trading where it was trading before the news came out.
The financial problems of Greece, Portugal, Spain, and Italy are well known. The market has repeatedly discounted the consequences of this situation but I think it is getting tired of doing so. This sort of bad news has not had much net effect and I think this reveals the underlying strength of the current bull market.
I don't have much of a feel for the price action we shall see the rest of today and tomorrow. (The Fed will make an announcement at 2:15 pm this afternoon.) But I am confident the market is scraping bottom and that a move up to 1270 is imminent.