The Continuing Correction

After yesterday's relatively quiet session, the market is back under selling pressure this morning. While it looks rough out there, I would note that the SPX has not undercut its 8/6 lows yet, which is a positive. Ditto the Nasdaq, which remains above its 200-day support.

Retailers are down this morning on the heels of weak earnings reports and guidance from both Home Depot (HD) and Wal-Mart (WMT). And both of these stocks are trading lower. On a positive note, the IPO of VMware (VMW) opened with huge fanfare.

The core PPI report was positive this morning, in that it showed a continued easing of inflation pressures. This is helping bond yields drift lower, with the 10-year yield around 4.74%.

Oil is still up a bit, with crude prices around $71.85. And Asian markets were mixed overnight.

Measures of investor anxiety are again elevated today (put/call ratios, ARMS Index, volatility indexes), and there is significant pressure on the brokers. I think the market will recoup some of these losses into the close, which would be a net positive.