The market is on its heels this morning as the bulls are receiving a barrage of bad news. There were a number of earnings disappointments, most notably Cisco, and Asian markets were down hard. Seasonality is not helping the bulls either.
In a market that is overbought and over bullish this would normally lead to a pullback. This has been the case a number of time in the past few months but has not mattered. From an anecdotal standpoint every time we see a dip on the S&P 500 people start asking if this is the start of a correction. Normally, I would say that is good for the bulls but I doubt many of these people are putting their money where their mouth is, given what a black hole the short side has been.
If my sentiment is any indication I very begrudgingly rolled up the strikes on my hedges this week and viewed the trade as throwing money down the toilet.