$SPX ends dn 14pts to 1073, as equities sell-off into the close. Senator Lincoln will be on the committee responsible for finalizing the legislation

· SPX ends dn 14pts to 1073, as equities sell-off into the close. Very quiet session with volumes slowing further in the afternoon. US stocks traded largely w/European indices through the morning including an midday rally into positive territory before drifting lower through the afternoon. Weighing on equities are many of the existing worries around European sovereigns (the UK announced EUR6.2B of austerity measures this morning, Germany is set to announce plans to cut its budget by EUR10B this week and Spain’s PM said this morning he will not bow to union pressure to revise the country’s EUR15B austerity plan), uncertainty around the upcoming financial regulatory reform legislation (Reuters reported this afternoon that Senator Lincoln will be on the committee responsible for finalizing the legislation) and concerns over Spanish banks (the Bank of Spain bailed out a regional bank over the weekend and 4 Spanish banks submitted a proposal today to pool their businesses). The Euro remains weak today, trading off 1.6%, and losing all of Thurs/Fri.’s gains. Existing Home Sales this morning came in better than expected (5.77M vs. St. 5.62M). Technically, 1095 and then the low 1100s (1100, 1103 and 1107) are seen as resistance while 1070, 1066 and 1056 are seen as support.  Volume on the desk lightened up further through the afternoon and the desk is still not seeing much real money buying stocks even after the big breakdowns many had last week.