The Dow gave up another 62 point today, after yesterday's 199 point plunge. Uncertainty surrounding the debt ceiling vote, or lack there of, is driving investors and speculators to sell stocks. I would hope that lawmakers will do the right thing to avoid default and at least pass some kind of short-term measure, but they are already posturing for the 2012 election, so it would not surprise me if they let good sense and prudence take a back seat to politics (again).
If they do pass something, I would expect stocks to rally smartly, which is why I am looking to put some of my cash to work. We closed right at 1,300 on the S&P 500 today, so we have dropped roughly 50 points over the past few sessions. If I can get the S&P 500 down below 1,275, I will probably invest some cash with the expectation that Congress will take action to avoid a default. If they stall, and we default, stocks will likely get hit hard. If that happens, I will look to put a lot more cash into stocks, once we crash.