[jyl]

The sector that is pressing hardest on the market is financials. Other sectors are not making new lows.

Compare, for example XLF (Financials ETF) which is breaking down to new lows, versus RTH (retail), IGM (technology), OSX (energy), and other non-financials ETFs and indicies.

Financials, read banks, are at new lows because market is unsure if there will be anything left for bank equity holders. Also companies like GE, which have large financial operations. The talk of nationalization doesn't help, but fundamentally the problem is that the banks haven't convinced investors that they are solvent.