Wednesday, November 01, 2006

Are We In For A Correction?

The market continued to pull back throughout the day, closing near its lows.

Volume levels rose on the session, making for a distribution day. I'll admit the market feels a little heavy here. Many leading growth stocks were sold-off rather hard today. But I think some of the selling was likely due to mutual funds who finished their fiscal years on 10/31, and now can sell some of their winners.

The SPX is only off about -1.5% from its highs. I maintain that I doubth this correction will go much beyond 2-3% before buyers step in and take the market back up. The Russell 1000, S&P 400, and Nasdaq are only up mid-single digits on the year, and I think they make a run at double-digits into year-end.


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