Pullback continues!

We came into yesterday thinking a pullback was at hand. At 10 am, we were not so sure. But the reversal and this morning’s open simply tells us things are getting a little tougher in and around these levels. To be brief, pullbacks are a normal part of the process. They don’t have to lead to anything nefarious. But as markets get distributed, we watch closely to see if things worsen. As of now, normal…of course unless you are in the commodity complex…that amazingly, has found no respite in its recent carnage.

The good news is every 10 cent drop in gas prices is $10 billion not spent on energy…totalling about $100 billion right now…and that is just the consumer. Weekend report up next.