Most Advertised Retest

I must say, this has got to be one of the most advertised retests that we are seeing.  It surprises me that so many people predicted such a retest.  But sentiment is not concrete and is just one of the factors to look at.  Often times following the herd is the right thing to do.   The euro weakness is trumping everything right now, and provides an easy excuse to sell. 

One thing I have noticed is that gold is weakening today, which tells me all risk assets are deflating.  I do expect continued weakness today because we have broken through 1141 and we should test the close of Thursday at 1121.  Beyond that, it is very possible that Europe panics on Monday and we gap down to fill the gap from Friday down to 1107.