Market Bouncing After Big Distribution Day

The market is getting a bounce in early trading, following yesterday's big selloff. The S&P 500 bounced right off its 50-day support this morning, but it has tested this level several times now in the last month, which makes it more likely that this support could give way.

The financials are under pressure this morning as two Bear Stearns (BSC) hedge funds are in trouble, and weighing on the sector. The restaurant group is also lower, as Starbucks' CFO said the high-end of its current guidance would be challenging due to higher dairy costs this year.

The energy complex is higher, as oil bounces again. Crude prices hit $69.50 today, which is another headwind for the overall market. The 10-year yield is also up a bit, near 5.13%.

But Asian markets shook off our weakness, and were mostly higher in overnight trading.

long SBUX