..still digestion

Heading into the trading week in DJIM #45, noted a ‘short’ on expectation of back-filling, digestion and nothing more.   Now,  2 days trading days later and the first back to back down days in weeks are in the books with SPX at 1213.   Despite, the somewhat ugly afternoon, (some calling it a start of a correction), this should not be looked at as anything more than digestion for now as the best performers most recently ‘super-fins’ succumbed to profit taking and metals reversed sharply on new CME futures margin requirements.   As pointed out often here, you’ll see this was once again mostly an ES/ETF driven move as individual equities in our list and overall held up fine. 

Right now, the market with little catalytic events this week will use any ‘little’ negative(s) to feed on and try to sell off. It used a bunch today.  Nothing can compare to the 3 big events last week that just passed and so a bunch of little ones shouldn’t rattle the markets for too long or too much to the downside.