Stocks retreated from their opening highs as investors turned their attention from Spain's bailout and looked toward the upcoming Greek elections. Next week's voting will set the stage for the fate of Greece as a member of the common currency region.

Nine of the 10 sectors on the S&P finished in the red, led by steep declines in financials. Bank of America Corp (BAC -3.70%) and Citigroup Inc (C -4.75%) fell. Tech stocks were also under pressure. Shares of Apple Inc (AAPL -1.58%) reversed an early gain and fell after new details surrounding the company's revamped Macbook failed to excite investors at the Worldwide Developers Conference. In other news, AK Steel Holding Corp (AKS -13.97%) sank following an analyst downgrade that cited gloomy industry fundamentals. Also in the space, U.S. Steel Corp (X -6.48%) shed in the sympathy trade.

Turning to bondland, Treasuries were higher along the curve. The benchmark 10-year note added 3/8 of a point to yield 1.60% and the 30-year bond rose 1/2 of a point to yield 2.72%.

Technically, the big gains by the major averages on Wednesday's session were too soon (Day 3) in the nascent rally attempt to be considered a valid follow-through day (FTD).  The expansion in leadership (new highs) and the major indices' rebounds above their respective 200-day moving average (DMA) lines with gains on higher volume were encouraging signs. 

The major averages (M criteria) are technically still considered to be in a rally attempt within an ongoing correction, and stocks may still be vulnerable to  greater downside.  Historical studies suggest that the most constructive market rallies produced a solid follow-through day (FTD) between Days 4-7 of a new rally effort. Gains of +1.4% or greater by at least one of the major indexes should be backed by higher volume (preferably above average volume) coupled with an expansion in the number of stocks hitting new highs. Only fresh technical proof may give fact-based investors the clearance to begin with new buying efforts strictly in sound buy candidates. Meanwhile, investors should keep up a watchlist of worthy buy candidates while remaining protective of capital.

PICTURED: The S&P 500 Index reversed early gains and ended lower on Monday's session, marking Day 6 of its latest rally attempt without a confirming FTD of solid gains on higher volume. Unless the "Day 1" lows are violated the rally attempt still remains valid. Notice that the benchmark index also has a downward sloping 50-day moving average (DMA) line. When that short-term average has a downward slope it is fair to say the market has been struggling for a while, and disciplined investors following the fact-based investment system have likely moved much of their cash to the sidelines. This tactical approach reduces stress and protects precious capital during bearish market environments. This also helps to preserve investors' confidence so they are ready to act when a new confirmed rally eventually presents itself while less experienced investors might still be nursing their wounds.