Today's rally was supported by better-than-expected earnings reports and strong economic data.
We've had a dramatic rally this year, and we're getting a normal pause today. The companies that are pulling back are the ones that have had very good runs. So far, that's the message of the market.
After four days of selling, a giveback of about half of the gains of the first seven days of the new year and a big increase in gloom, we look for a rally attempt.
The big change in this market the last month or so has been a mood shift from 'the glass is half empty' to 'the glass is half full', and that's why we've had a good rally and a very modest time-out to catch our breath.
The fundamental news and the inflation news remain quite positive. We had that big six-week rally in October. Stocks at this exact moment just don't seem ready to stop this correction.