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Worldwide markets declined today with concerns that lower commodity prices were signaling weakening economies around the world. When coupled with news of a slowing economy in China, a bleak picture emerged. SPX closed down $13 at $2064 and RUT lost $5 to close at $1159. Trading volume in the S&P 500 rose slightly from yesterday to 2.6 billion shares. Trading increased 5% on the NYSE, but decreased 2% on NASDAQ. Volatility spiked higher with the VIX closing up nearly two points to 17.6%.

SPX dropped as far as $2052 this morning but then recovered and chopped sideways into the close. It appeared as though SPX found support at its 50 dma at $2049. RUT didn't decline as much as SPX, so one could take that as a positive sign. But RUT definitively broke through its 50 dma and didn't recover that level in today's trading.

Traders are still obsessed with the Fed announcement next week, although the consensus appears to be that they will start to raise interest rates at this meeting. Is this recent market weakness a result of that expectation?

In summary, the market is limping along weakly, but the bulls are still buying the dips. It seems unlikely that a strong trend in either direction will materialize until after the Fed announcement next week.