REBOUND WILL MOST LIKELY FAIL

Gap down open and rebound at open as expected. The down move was (too) strong and I saw a little panic in intraday trading. However, this rebound will most likely fail eventually, I’ll try to explain later. Below 5min SPY chart, better update coming at close.

EDIT: as a side note, why is Italy an Spain forbidding shorting? Especially Italy which has forbidden shorting bank and insurance stocks until 27.7.2012, what is this about..?