The market is took a rather nasty hit today but as we indicated, the sudden erosion in the worry and concern about this market was a likely catalyst for some selling. For months the market has been slowly and in a choppy manner, climbing a Wall of Worry. In the last few days that worry dissipated quickly as the NASDAQ took the lead and technology stocks began to outperform. Many former bears were suddenly rushing in and that gave us the sort of frothy action that invites selling.

The pullback today is exactly what we need to put the fear of the bear back into the market and restore the high level of caution that holds us aloft. We feel that this action today, although painful, is a necessary step before we can work higher again. Hopefully earnings will prove to be a positive catalyst.

Near the close the selling began to look downright panicky and throughout the day we were working hard on our watch lists. We want to be ready to deploy capital as soon as it looks like a bounce is coming. It is still too early to anticipate a turn but we are getting an itchy buy finger.

Every major sector was in the red today and breadth finished well over 2 -1 negative. Despite the draw, no real technical damage was done and although it is never easy to give back some gains, we feel fine about the action.

Rest up this weekend and be ready to rumble come Monday morning. Well be working hard on some new opportunities and suspect it wont be long until the action heats back up, allowing us to put some new ideas into play.

Have a good evening.

RevShark