The Correction Is Coming Choir

The bears managed to hold the line and keep the market under pressure.

While many will cite lower oil prices, inflation concerns ahead of Bernanke's testimony, and continued real-estate fears as justification for today's weakness, the simplest explanation is that the market is looking for reasons to sell off. Even merger mania didn't seem to gather much interest.

The correction is coming choir has been singly loudly. Now the year-end and beginning of the year performance chase has been put on the back burner, most traders I've been talking to are either taking profits or at least holding back from making more aggressive trades. Sure, there are always exceptions, but I'm not finding may who are willing to stand up and say they're making hard trades this week (i.e. being very long or very short).

It may help to also know that we tend to see mid-Febuary turbulence and, according to Stock Trader's Almanac, the Friday before President's Day is usually weak also (the S&P 500 has been up only 8 times in the last 31 years). Today's selling did come on lower volume which is a sign of less conviction but I also think of general complacency. Bottom line - I don't think the bulls are going to lose any sleep until they break the December lows. See you tomorrow!