Expecting A Correction

Good morning. Premarket futures are lower after Microsoft walked away from its bid for Yahoo and investors were disappointed in Berkshire Hathaway's earnings. However, it is a quiet Monday morning without a lot of actionable headlines following mixed performances in overseas markets and a rebound in commodities.

Premarket gainers: STEC, WAVE, ALVR, EMKR, MPEL, S, VISN, MSFT, CLR, GOOG, VCLK, BBBY, TEVA, PCU, FEED, DOV, HANS, GD, NGS, AUY, DSCO, and MVL.

Premarket losers: YHOO, IDMI, ACAS, TLAB, SWKS, CFC, JASO, JDSU, CYBS, IR, QCOM, ASML, IR, and CSCO.

According to Bloomberg, options traders are paying 63% more to protect against a drop in the S&P 500 than to bet on a gain, the widest difference since at least 2005. The vast majority seem to be expecting a correction, or at a minimum, at least some consolidation following the recent gains in overbought conditions.

After the open, we have the April ISM Services report at 10:AM and a better than expected report will help the market after the open. Bernanke is also scheduled to speak today about mortgage delinquencies and foreclosures.

Let's make it a great week!