I remain of the belief that Egypt is an excuse for a much needed correction. We are headed into the seasonally strong turn of the month and we did see some fear enter the market on Friday. That may lead to some stability in the near term. However, after a five month run for the roses I suspect that this correction is not over yet.
The question I am grappling with is if this is a correction or the start of something more sinister. I am leaning towards the correction camp, given the positive seasonality for the next few months and the fact that corporations are still big buyers of their own stock. A spike in commodity prices, credit spreads or interest rates would likely change my mind.