It is getting U-G-L-Y out there from both a price action and market breadth perspective. Lots of sectors and indices making new year-to-date lows in both price and breadth. With earnings season upon us it’s going to be an uphill battle for the bulls in the second half of the year. The DJIA is the first of the major indices to hit the single digits for number of components above the 200 SMA. Notice also that the consumer staples ($XLP) had the smallest decline this week as staples are perceived as a defensive play in the equities when the economy is in the tank.