By Jeff Clark in the S&A Short Report:

The pullback off of the highs this morning is bearish. The bulls emptied their rifles but couldn't take out the highs from early May. So it looks like we have a "lower high" formed on the charts.

The unanswered question is..."Do the bulls have enough ammunition to reload and make another run at the highs?"

Of course, we can't know for sure. Given how the market sold off in the final moments yesterday; and given how it has erased nearly all of this morning's gains, it's hard to imagine the bulls mounting another charge.

But, anything is possible. The natural ebb and flow of the market has been interrupted for so long nothing will surprise me at this point. The edge, though, has to go to the bears.

And, if the S&P drops below 900 then we could see a fast move back down to 875.

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