PMI was released and was worse than expected, 54.3 vs 55.8... the market did not really respond, it just held its losses... this tells me that the Sequester is the only news that really matters here. So, we are in a news driven market today and probably Monday. The pattern on the SPY is somewhat bearish and toppy IMO, but this news can easily push the market higher, or lower.
When in a news driven train trading environment, remove your bias, for anything can happen... This is when I trade small and take profits quickly... A few 0.5% or 1% gains really do add up.