SHORT TERM: stocks slip lower in quiet trading, DOW -87

Overnight the Asian markets were mixed, and Europe's DAX closed +0.12%. US stocks opened slightly lower and then rallied to 1416 by 10:00, the high for the day. Also at 10:00 ISM services were reported to be expanding, with the current reading at 52. The market pulled back on the news to SPX 1405 by 11:00. After that the SPX stayed in a very narrow five point range for the rest of the day, while touching 1404 at 2:00. At the close the SPX/DOW were -0.55%, and the NDX/NAZ were -0.40%. Bonds were flat, Crude hit $120 gaining $3.70, Gold rallied $17.00, and the Euro was higher. Support for the SPX now notches down to 1383 and then 1364, with resistance at 1410 and then 1438. Short term momentum moved lower all day, closing at neutral. The near term indicators are still displaying negative divergences from fridays highs, and have slipped a bit lower. Marc requested that I post both the potential bullish count, and the preferred bearish count on the SPX, as mentioned over the weekend. The chart is below. Fed chairman Bernanke speaks tonight in NYC at 8:30. After reading friday that the FED is now accepting questionable student loan paper in exchange for treasuries: http://www.bloomberg.com/apps/news?pid=20601109&sid=a1ctn1Xfq5Do&refer=exclusive. Wonder whose next on the Bernanke Bridge loan agenda. These actions will create future problems for the FED in the name of political pressure, as mentioned in that piece. Best to your week!

MEDIUM TERM: uptrend may have topped at 1423, near the 89 wma

LONG TERM: bear market, unless the FED has determined to prevent one in this election year

CHARTS: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1606987