The market had become very stretched when looking at various sentiment and overbought measures. Health care reform seems to be the excuse the market needs to correct.
We are quickly approaching the 1150 level of support on the S&P 500. That level should be a tough nut to crack for the bears. However, even if the bulls are able to defend it this morning, a correction usually lasts more than a session and a half and there should be further attempts later in the week.
Health care reform reinforces my longer term bearish concerns. Starting in the second half of the year stimulus will be down year over year, comps will get tougher and we will be looking at higher taxes in 2011.