Markets drop at the open printing an SPX LOD at 1436.30 thus far. Consumer Sentiment was a shade lower than expected. The bears need to drop under 1434 to accelerate the downside. The euro is using the 129 level as support. Gold continues to fight for the 1780 which would lead to 1820's if the gold bulls can push price higher and close over 1780. UTIL is at 473.61 over two points above the important 472.06 level for next week. This indicates that the bulls may try to simply weather the storm today, keep UTIL above 472.06, and mount a bull move early next week.The Spain stress tests are due at noon time, which should result in a market pivot point, less than a couple hours away. Markets may idle until then unless news leaks out ahead of time. Perhaps markets will settle in for the day after the news. This week is on tap to finish on the down side which would be in line with seasonalilty that indicates this week after OpEx in September is down over 80% of the time. The full moon is tomorow which helps the bulls today. Pay attention to UTIL 472.06 today and also the euro. The euro movement will dictate the markets; up euro = down dollar = up commodities, copper, gold, silver and equities. Down euro = up dollar = down commodities, copper, gold, silver and equities. The Spain stress tests will dictate the euro move. The euro has dropped back under 129, under 128.90, 128.80, 128.70, now printing 128.67. The euro critical bull-bear line in the sand remains at 128.30.Note Added 9/28/12 at 10:32 AM: The SPX fell thru the LOD printing a new low at 1435.60 so keep an eye on this number. The bears need 1434. Considering the impact of the imminent Spanish stress tests, the SPX may idle in this 1434-1438 range until the news hits. This would provide the area to either launch from, or collapse thru. Of course, if 1434 fails at any time forward, the broad indexes will accelerate lower and likely remain weak into the weekend. UTIL is 473.49. VIX is 15.60 back up and over the 20-day MA, see if it can move back up and over the 50-day MA at 15.94. A VIX 16 handle will be an all clear for market downside. Thus, all eyes and ears are focused on Spain's arena, will the bull live or die today? The euro is 128.55 continuing to leak lower now only 0.25 away from the danger line which will cause market turmoil.Note Added 9/28/12 at 11:37 AM: The euro is 128.44 now only 0.14 away from danger. The SPX sits above 1434 still holding the 1435.60 LOD. UTIL is at 472.64 a hair above 472.06. VIX at 15.60 between its 20 and 50-day MA's. The 8 MA is on the verge of stabbing down thru the 34 MA on the 30-minute chart. The table is set. Launch, or die. What say you Spain?Note Added 9/28/12 at 12:22 PM: Spain says seven banks have needs, seven do not, overall the news is in line with the consensus so no great shakes. The euro pops, albeit slightly, now printing 128.77. The SPX moves about three handles higher after the news thus far to 1442. Watch the 20-day MA at 1441.68, this serves as a great bull-bear indication for today. UTIL is 473.67 which would put the bulls in the drivers seat come Monday. Moody's typically announces downgrades after the markets close on Friday's so that serves as a wild card for Spain, and the global markets as the weekend approaches. The bulls are going to set themselves up for buoyancy early next week unless the bears can step in over the next few hours to create negativity. If UTIL moves under 472, that will create negativity, likewise the SPX falling under the 20-day MA. Watch the COMPQ versus SPX, both down -0.45% fight now. If tech starts to lead lower today the bears will rejoice; if the COMPQ starts to outperform the SPX to the upside, then the bulls will send markets steadily higher into the weekend.Note Added 9/28/12 at 12:54 PM: The SPX is 1441.56 six pennies under the 20-day MA. The COMPQ is down -0.43% while the SPX is down -0.39%, bear friendly. Bingo. The 8 MA just stabbed down thru the 34 MA on the SPX 30-minute chart indicating that the bears will rule for the hours and days ahead. UTIL is at 474 keeping the bulls in business. Tricky markets.Note Added 9/28/12 at 1:47 PM: The SPX jumps higher, over the 20-day MA, and now the 8 MA has recovered back above the 34 MA on the 30-minute chart, albeit by pennies, placing the bulls in charge again. Tech still leads the broad markets lower keeping the bears in business. Wishy washy, fickle markets, best to let them meander along today. Note how the euro is at 128.55-ish about where it was before the Spain stress test news.Note Added 9/28/12 at 4:03 PM: Tech led the downside today helping weakness reenter the markets as the day played out. AAPL fell 2%, bearish for markets. The SPX finishes under the 20-day MA, bearish. XLF finished under its 20-day MA, bearish. UTIL will start next week above 472.06, bullish. The 8 MA finishes above the 34 MA on the SPX 30-minute chart, bullish. TRIN is 1.82 verifying the market selling today but not obscenely so, so it would be open to further selling pressure moving forward. VIX closes at 15.61 smack-dab between the 20-day MA and 50-day MA. A mixed bag all the way around. The SPX high print today at 1447.13 is important for Monday. Listen for any potential Moody's downgrades, especially for Spain, if it occurs it will likely hit over the next hour or two. The euro is 128.46 a measley 0.16 above the 128.30 bull-bear danger line that will create strong broad market selling. Gold is very interesting; note how it cannot seem to close in the 1780's, which would lead to the 1820's, price keeps balking at 1780. This can only be viewed as bearish. Watch gold closely moving forward to see if it can close and stay above 1780 since it will also serve as a proxy for other PM's. Q3 ends. Q4 (October-November-December) begins.