Will Yesterday Be Another One-Day Selloff?

The markets took a bit of a tumble yesterday, and there was really no big news to hang your hat on. It was just one of those profit-taking selloffs that come after a long stretch of gains.

This morning, the market is getting its usual bounce. But the question on trader's minds (you know I don't like up opens), is if the strong open is setting us up for a reversal later today? I would not be surprised to see additional profit taking ahead of the long holiday weekend.

There was more M&A news this morning, with Coke (KO) buying Glaceau and Nasdaq (NDAQ) buying the Nordic bourse. There were also buyback announcements from LOW, ABC, and EQR.

Existing home sales came out weaker than expected, though it didn't weigh on the market much. Oil is bouncing ($64.88) after yesterday's plunge, and the 10-year is stable at 4.85%. I think the 10-year yield is ready to rest after a big 2-week run.