Can you call a 0.7% down day a correction? Are we that desperate as traders? The VIX should be trading at 10, not 12. Mind numbing action. The much anticipated correction is over. There is no way we're going down below Tuesday levels in holiday trading. And holiday trading seems to be starting early. Can't blame those leaving their trading stations today to start the 3 day weekend early. They won't be missing much.
Those looking for a correction all have one thing in common: divergences. Pointing out the divergences of the Russell and the S&P as being bearish really isn't an edge. It may be bearish over the long run, but over the short run, it doesn't matter. Over the time frame that I usually look at for trading, these small cap-big cap divergences don't help me time anything. In fact, my gut tells me we rip above 1900 next week, and then to 1920 by the first week of June. It is making me nervous holding my bond position, which I will probably sell soon.
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