I believe we are seeing a correction and not a market top for a number of reasons:
- We continue to see very aggressive share repurchases being announced. Last night Quallcom announced a $4 billion repurchase and the previous night Applied Materials announced a $3 billion repurchase. This comes after a very strong month of share repurchase announcements.
- Mid-March to mid-April is an extremely seasonally strong period.
- There have been no buyable dips this year. The first buyable dip is likely to be bought by underinvested managers who didn't want to chase and sold out bulls.