A market can correct by going lower or by going sideways. I am willing to entertain the notion that the market has corrected by going sideways. It is certainly is not as overbought as it once was and if it keeps going sideways it will no longer be overbought at all. However, I believe sentiment is also part of a correction and it has stayed stubbornly bullish thus far.
The Investors Intelligence survey still shows an overwhelming majority of bulls. There is a story in the Journal this morning about how oil prices don't matter. Spreads are blowing out again in the European periphery but everybody remains sanguine. Low risk buying opportunities come about when the crowd is fearful as a lot of bad news gets priced in. That is certainly not the case right now.
April is the strongest month of the year and strong seasonality often trumps sentiment and fundamentals, which is why I am not positioned bearishly now. I am still hoping for a scare in the next couple of weeks that allows me to take advantage April's strong seasonality.