There is not much to say about what has been some very ugly trading the last few weeks. The S&P 500 is down 5.68% from its late April peak and has traded through much of the immediate support without a bounce. It seems like 1255-1260 is almost certain, but what I find interesting is how tame short-term volatility has been. Despite a lot of ominous signals in both the way equities and bonds are trading as well as some pretty rotten economic indicators, we have yet to see a strong spike in volatility. This makes me think that those who are long are reluctant to put on hedges and/or any spike in volatility is met by a frenzy of volatility sellers. If it is simply the latter, then those volatility sellers will be puking shorts if this turns out to be a 15% correction with the S&P below 1200.